Sony Shares Plunge as Company Predicts Peak in PS5 Sales Growth: What This Means for the Gaming Industry
Sony’s stock took a hit after the company revealed that PS5 sales growth has likely reached its peak. According to Bloomberg, Sony shares dropped as much as 8.4% before closing down 6.5% following the release of the company’s latest financial results.
Sony had high hopes to ship a record 25 million PlayStation consoles by March, but now expects to miss that target by four million units. The company also announced that it anticipates a decline in PS5 unit sales starting next year, and it has no plans to release new installments in major franchises like God of War and Spider-Man in the next few years.
Asymmetric Advisors strategist Amir Anvarzadeh expressed concerns about Sony’s gaming business, suggesting that competition from Microsoft’s Game Pass subscription service could disrupt Sony’s plans.
In response, Sony has started offering significant discounts on the PS5 Slim in several European countries. Additionally, company president and PlayStation chairman Hiroki Totoki expressed a desire to improve the gaming division’s profit margins by focusing on bringing first-party games to PC.
Overall, the future of Sony’s gaming division is uncertain, and it will be interesting to see how the company adapts to the changing landscape of the video game industry.
