Since his tumultuous takeover of Twitter, Elon Musk has made an unabashed turn to the right politically, defying the orthodoxy that Silicon Valley is a citadel of well-heeled liberals beholden to Democrats. Long considered non-identifiable ideologically, Musk's politics are now hardline right wing as he uses his platform (now called X) to stoke the themes cherished by Fox News, conservative talk radio and far right movements across the West.
Sony’s Stock Value Falls by $10 Billion Amidst Declining Margins and Missed PS5 Sales Target
20.02.2024 - 10:05 / gamingbolt.com / Serkan Toto / Sony
Sony recently announced that the PS5 has sold 54.8 million units worldwide, and while that’s quite an impressive number for a console that’s only just entered the fourth year of its lifecycle, it has missed the company’s internal sales target by quite a bit. Sony has, as such, revised its forecast for total PS5 units shipped during FY 2023/24 (which ends on March 31) from 25 million down to 21 million, and the company is now feeling the immediate repercussions of that.
As reported by CNBC, based on calculation using FactSet data, Sony saw a drastic decline of around $10 billion in its stock value after it announced that it had lowered its PS5 sales target for the fiscal year. At the time, the company also announced that with the console approaching the latter half of its lifecycle, its sales were expected to see a gradual decline going forward.
While the missed sales target is certainly a concern, it seems there are even bigger potential problems at play. As per Atul Goyal, equity analyst at Jefferies, the larger issue lies with Sony reporting its low operating margin. The company’s gaming division recently reported an operating margin of 6% for the quarter ending December 31, which is not only down from the 9% that was reported a year prior, but also the lowest it’s been in nearly a decade.
According to Goyal, prior to 2022, margins had been hovering in the 12-13 percent range for a period of four years. The analysts, who calls the current operating margins “extremely disappointing”, says this is “despite various tailwinds that should have driven up the margins towards 20%.”
Serkan Toto, CEO and founder of consultancy firm Kantan Games, states that Sony’s operating margins have likely been impacted by the long-term effects of the large budgets the company assigns to its first-party titles- such as Marvel’s Spider-Man 2, which reportedly had a development and marketing budget of $315 million, as per leaked internal documents emerging from the data breach suffered by developer Insomniac Games in December.
Recently, Sony also said that it won’t be releasing any new instalments in major existing first-party franchises until at least April 2025. However, the company does have several PlayStation Studios releases lined up for 2024 nonetheless, with the recently-released Helldivers 2set to be joined by the likes of Rise of the Ronin, Stellar Blade, Concord, and Until Dawn over the coming months. Leaks have claimed that a new Astro Bot title could also release this year.
The website gametalkz.com is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.
Top Authors
Popular Topics
polygon.com
01.03.2024 / 23:19
Poor Things, Aquaman 2, Netflix’s Spaceman, and every new movie to watch this weekend
February is coming to a close, and with it, more awards contenders are heading to streaming services with the Oscars around the corner.
gamesradar.com
01.03.2024 / 13:11
The 7 best new movies and shows to stream this weekend
As another weekend rolls around, we're back with another batch of streaming recommendations. It's a strong week for movies, with brand-new sci-fi drama Spaceman taking Adam Sandler to new dimensions on Netflix, Ridley Scott's historical epic Napoleon arriving on Apple TV Plus, and Sofia Coppola's latest film Priscilla hitting MUBI in the UK.
tech.hindustantimes.com
24.02.2024 / 04:03
OTT releases this week: Adam Sandler is in space, 'Elsbeth' sleuths and Japan shines in 'Shogun'
Adam Sandler playing an astronaut on a solo mission to the edge of the solar system in the sci-fi drama “Spaceman,” and Disney 's animated coming-of-age story “Iwájú” set in the future in Lagos, Nigeria, are some of the new television, movies, music and games headed to a device near you.
gamesradar.com
22.02.2024 / 14:09
Pennywise actor Bill Skarsgard sets horror movie return as The Crow reboot gets release date – and it's sooner than you think
Lionsgate's upcoming reboot of The Crow has finally landed on a release date – and it's much closer than we'd anticipated.
thesixthaxis.com
21.02.2024 / 10:27
“Broad consensus” that a PS5 Pro will launch in 2024
CNBC have been talking to some analyst who have suggested there is a firm belief that Sony will launch a PlayStation 5 Pro model in the second half of this year.
gadgets.ndtv.com
21.02.2024 / 09:23
Sony Readying a 'Pro' Version of PS5 This Year Ahead of GTA 6 Launch in 2025: Report
Sony could reportedly release a Pro version of the PlayStation 5 later this year to help PS5 sales find a second wind in the latter half of the current console generation. The PS5 has sold over 50 million units since its launch in November 2020, but the sales for the console are slowing down. Sony is set to miss its PS5 sales target for fiscal year 2023, with the Japanese electronics giant expecting to sell four million units fewer than its 25-million goal for the year.
videogameschronicle.com
20.02.2024 / 19:12
Sony is likely to launch PS5 Pro this year, analysts say
A number of games industry analysts have reportedly said they’re expecting Sony to launch a PlayStation 5 Pro console later this year.
gamerant.com
20.02.2024 / 17:41
PS5 Pro Console Expected to Release Later This Year
According to industry analysts, Sony's PS5 Pro is believed to be on the horizon, releasing sometime in the latter half of this year. Four years after its release, the PS5's anticipated Pro version may finally become a reality for many fans who have been eager for its release.
gameranx.com
20.02.2024 / 12:56
Rumor: Industry Analysts Expect Sony Will Release A PS5 Pro This Year
Analysts believe that Sony will be releasing a PlayStation 5 Pro this year.
thesixthaxis.com
20.02.2024 / 11:29
“Broad consensus” that a PS5 Pro will launch in 2024
CNBC have been talking to some analyst who have suggested there is a firm belief that Sony will launch a PlayStation 5 Pro model in the second half of this year.
wccftech.com
20.02.2024 / 00:57
PlayStation Decade-Low Profit Margins Worry Analysts Amid Runaway Game Budgets
Sony’s most recent earnings report wasn’t a great one for the previously-strong-seeming PlayStation brand. As we reported, Sony downgraded their fiscal year 2024 (which runs from the beginning of April 2023 to the end of March 2024) target for PS5 sales from 25 million to 21 million. They also admitted that no major AAA franchise entries will be published over the course of this coming fiscal year. Needless to say, this wasn’t received that well, partly leading to a plunge in Sony stock that subtracted an estimated $10 billion from the Japanese company’s value.