Sonys shares plunged 7 after the earnings report and the
Games

Sony’s shares plunged 7% after the earnings report and the cut to full-year guidance

Declining gaming revenue and a deterioration in Sony’s full-year earnings outlook have triggered the company’s biggest share price drop in six months, the company said Bloomberg. After the start of the first full trading session after the publication of the quarterly report, the prices of the shares of the Japanese company fell by 7%.

    Image source: Sony

Image source: Sony

Sony’s operating profit for the current fiscal year ending March will not exceed $8.3 billion, as expected by management. This is worse than the previous forecast and most of the decline was borne by the department responsible for gambling and network services. The company’s expenses will need to rise as they rise from the Bungie acquisition, weak third-quarter revenue guidance and the weakening of Japan’s local currency.

Sony’s failures aren’t solely to blame for weaker sales of PlayStation 5 consoles, which have grown by just 4% in a year, according to analysts at Asymmetric Advisors. The company’s spending is rising due to aggressive takeover policies from game studios, and Sony’s gaming revenue could be further eroded by internal competition from a recently launched game streaming service that gives users access to hundreds of legacy games. Not the best way that the company does in other areas of activity such as the implementation of image sensors for smartphone cameras. Unless the yen’s weakness drew customers’ attention to Sony’s music division services. Overall, this hasn’t particularly affected investor confidence in the company’s stability for the foreseeable future.

About the author

Alan Foster

Alan Foster covers computers and games and all the news in the gaming industry.

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