The drop in PS5 sales forecasts and the lack of arrival of games from well-known franchises, the main reasons

Sony's value plummets after PlayStation's latest financial meeting

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Sony's value would have been reduced by about 10 billion dollars in just one week following the revision of PS5 sales forecasts after Sony had planned to sell 25 million PlayStation consoles during this fiscal year, something that finally had to be reduced by four million after reaching 55 million consoles sold.

While it is true that, after the earnings report, Sony shares fell as much as 8.4% and closed down 6.5%, partly due to revised PS5 hardware salesalso coming into play is the decline in the operating margin of Sony's gaming business to 6% (down 3% from the prior-year period and down 12-13% from previous years).

In larger numbers, the CNBC report, which uses data from FactSet, suggests that This drop in share price has resulted in a decrease of around 10 billion in the value of Sony shares since the reduction of forecasts.

The rapid fall also resident in that Sony confessed that it expects PlayStation 5 hardware sales to “gradually decline” during its next fiscal yearthat is, from April 2024 to March 2025, further confirming that Doesn't expect to release “big titles from existing franchises” like God of War over the next 12 months.

PlayStation's strategy this year

In a Q&A after the earnings call, Sony chairman and PlayStation president Hiroki Totoki said he wants the company to be “aggressive” when it comes to improve gaming division profit marginswhich can be achieved in part with a greater focus on bringing first-party games to PC.

For now, the launch of Helldivers II simultaneously on PS5 and PC has been a complete success, exceeding 400,000 simultaneous players on Steam, a titanic figure that not even GTA V had reached in the past. Among the upcoming releases, the Until Dawn review is also expected to arrive simultaneously on console and PC.

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