Sony Shares Fall To New Low In 2 Years After Missed PS5 Sales Target

Expert Verified By

Lowest Share Prices Since Feb 2022!

Story Highlight
  • Following Sony’s quarterly financial report, the company’s shares nose-dived.
  • Sony’s shares have fallen to a new low since February 2022.
  • The main reason for this drop was Sony’s new sales target for the PS5 in Fiscal Year 2023.

Sony’s latest quarterly financial results were well below expectations. PlayStation generated record revenue, but profits were down, and PS5 sales disappointed Sony despite the console’s ability to move nearly 40K units every day.

Sony has revised its 25 million sales target for Fiscal Year 2023. The gaming giant now hopes to reach 21 million sales, but this cut has negatively impacted its share prices, leading to the biggest fall since February 2022.

Why it matters: The PlayStation division went through record success on paper last year. However, this result illustrates that Sony might not be able to rely on hardware sales alone to grow its business in the modern age.

 

Takashi Mochizuki from Bloomberg reports Sony shares fell by 8.4% on Thursday and closed at 6.5%. This fall reflects major changes in the company’s business moving forward, including the PlayStation division.

Sony also stated that PS5 console sales would decline in the future. According to the company, this console is now entering the second half of its lifespan, where console sales typically slow down.

PlayStation sells each console at slim margins, making it difficult to drop prices like past generations. This could lead to a sharp decline in sales this year, further worsening the situation.

On this note, a research note predicts a difficult situation for the gaming giant if this ends up being the case.

“If the platform has already peaked in growth then the outlook could be much grimmer than what we had in mind.

-Amir Anvarzadeh, Asymmetric Advisors strategist

He further said that Microsoft is fueled with cash, and its Game Pass subscription could prove highly disruptive to Sony. This does not seem far-fetched since Sony was the most concerned about Microsoft’s acquisition of Activision Blizzard. 

PlayStation 5
PlayStation 5 (Image By Tech4Gamers)

Sony’s goal of 25 million sales in the Fiscal Year was always seen as overly ambitious.

Analysts expected it to sell 18.5 million units at best, but the revised target is still higher than this figure. While console sales reached over 8 million units last quarter, it remains to be seen whether PlayStation will be able to continue this momentum till March.

The President of Sony has also begun to explore other means of revenue for PlayStation. He recently expressed interest in growing first-party through other platforms, including PC and mobile.

Was our article helpful? 👨‍💻

Thank you! Please share your positive feedback. 🔋

How could we improve this post? Please Help us. 😔

Latest News

Follow Us

104,000FansLike
32,122FollowersFollow

Trending

Redfall Has Struggled To Reach More Than 100 Steam Players For Nearly A Year

Redfall is nearly one year old, and for most of its lifespan, the game has failed to reach 100 concurrent Steam players.

Ubisoft Removes The Crew Purchases From Digital Libraries

Ubisoft has removed digital licenses of The Crew from existing libraries, highlighting the drawbacks of digital media yet again.

Petition To Stop Devs From Killing Online Games Reaches 5K Signatures

A new petition to the UK Government states that publishers need to stop killing games that were sold in a working state.

All the Ways to Level Up Your Hero in Final Fantasy 14

Final Fantasy 14 newcomers may struggle to deal with progressing their hero, but this guide offers simple tips to streamline the process.

TeamGroup Debuts Expert R31 3-in-1 Card Reader For Professionals

The TeamGroup T-Create Expert R31 is a lightweight memory card reader that promises seamless data transfers across a range of devices.