Sony Shares Fall Most in Two Years After Lowering PS5 Sales Forecast - News
by William D'Angelo , posted on 04 March 2024 / 4,665 Views
Sony shares had the biggest drop since February 2022 after it lowered its PS5 forecast for the current fiscal year and said PS5 sales have peaked, according to Bloomberg.
Shares for Sony dropped 8.4 percent on Thursday and closed down 6.5 percent, according to the report.
Sony had previously stated plans to ship 25 million PlayStation 5 consoles in the current fiscal year, which ends March 31, however, in its latest earnings report lowered it by four million to 21 million units.
The company is expecting PlayStation 5 hardware sales to decline year-over-year and has no major first-party releases from existing IP for the next fiscal year, which runs from April 2024 to March 2025.
“Regarding first-party software, we aim to continue to focus on producing high-quality works and developing live service games," said Sony President Hiroki Totoki. "But while major projects are currently under development, we do not plan to release any new major existing franchise titles next fiscal year like God of War: Ragnarök and Marvel’s Spider-Man 2."
Sony has shipped 54.8 million PS5 consoles as of December 31, 2023. This is 2.5 million units behind the 57.3 million PS4s shipped during the same amount of time.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.
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Sales have peaked? Wow, what a terrible state of affairs...
Sony has failed this generation and only looks good because Microsoft has failed even grandeur.
I don't know who they had issue the financial briefing the other day, but they did a phenomenal job "drumming up" PlayStation. Legitimately nothing but bad news was discussed lol. They had a solid Q3, there's no reason stocks should've fallen so hard.
It's to set up a bigger rise when they overperform the lowered expectations the next quarter. better overall than sticking to a target to the end and falling short.
That would be market manipulation wouldn't it?
In the US at least, financial briefings are not press releases. You can of course spin it as best you can, but you kind of have to give a fairly accurate picture of what's going on the next year, and it looks like it's gonna be a bit slow.
Stock prices don't work like that. The price is where half the people think it'll go up, half down.
If you think the price is low, take out your wallet and prove your point...
Hmmmm... we gonna call this a fad like the Wii? Cause they seem to be selling about the same three years in.
GTA6 releases next year.
Ok? Sony doesn't seem to think that's gonna boost sales.
Hard to say if GTA 6 will move consoles, as GTA V is still one of the best selling games every year, and plays best on the new systems, so many GTA fans probably already upgraded for that (or have migrated to PC). It will shift some console units, but will it shift many?
I always thought 25 million was way to high.
Ps5 still has legs and is still the most coveted console as of now.
Are consoles on their way out?
We did see unusually high inflation since this console launched. Way higher than any rate of inflation we've seen in most territories over the last 30 years. So you have to keep that in mind when considering price cuts.
Microsoft also suggested in that big Eurogamer interview about the Series S that one of the reasons they launched that system was that die shrinks weren't going to lead to price reductions as substantial as we'd seen in past generations. So PS and Xbox being at or near their launch prices still fits that prediction.
It's Nintendo that doesn't have as good an excuse, as there was low inflation for the first half of it's life.
Um guess Xbox is doing better because it is on pc. But still think playstation will do better overall
