Sony's stock value plummeted significantly last week. This after the company revealed a financial report with missed targets. PlayStation 5 did not sell as expected, some of its exclusives will be slow to arrive and, in addition, a decline in sales is anticipated.
According to recent reports, the poor results had a major impact on the company's value. For such reason, analysts are not very positive about what is happening with Sony and, of course, PlayStation.
Sony value falls $10 billion, according to report
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According to details, Sony's value fell $10 billion after disclosing its financial report and the problems it has had in meeting its fiscal year goals. In case you don't remember, the company adjusted its sales forecast for the period from 25 million to 21 million PS5s sold.
This caused its stock value to drop 8.4% and closed on the stock market down 6.5%. From this, it is estimated that the value of the company had a drastic drop of billions of dollars, which could impact PlayStation.
Given this, analyst Atul Goyal was not very positive, as he believes Sony's operating margin has dropped significantly. He claimed that the company's margin was between 12% and 13% for 4 years; however, it is now 6%.
From his perspective, he believes that Sony has fallen to one of its lowest levels in the last decade and thatthe results are very disappointing. Mainly since he believes its numbers had to go up thanks to PlayStation Plus, the pace of digital sales and other factors.
"Their revenue on digital sales, add-on-content, digital-downloads are at all time highs and yet their margins are at decade-lows. This is just not acceptable," the analyst stated.
Hiroki Totoki, the new president of Sony Interactive Entertainment, recently spoke about the future of the brand and was also concerned. He believes that they can improve in several areas to optimize the way they spend money and release planning in their studios.
Now then, Is PlayStation at risk? The brand has compelling content for this year; however, it needs to urgently improve the release schedule of its studios.It is currently on the verge of a potential crisis, as it is facing strengthened rivals, changes in the industry and, in addition, it will go through important internal adjustments.
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