Sony Shares Drop Since 2015 on Weak PS4 Demand
The financial sector is extremely sensitive and the video game companies that have a presence in the stock market know that the results of each fiscal quarter that impacted the stock market. In the case of Sony, its recent financial report caused the company’s shares to fall, in part, due to the commercial results of PlayStation during the 2018 holiday season.
According to a report by Bloomberg, Sony shares fell 8.1% on the Tokyo Stock Exchange after the presentation of its recent financial report in which it confirmed that the earnings obtained by the PlayStation division during the past fiscal quarter were low.
Also, this was added to the adverse results recorded in the smartphone division, causing the company to reduce its annual revenue expectations. According to analysts’ perception, the fact that the operating income obtained from the sale of PlayStation games fell by 14% ($666 million) and did not equal or exceed the 9 million PS4 sold in 2017.
At the same time, analysts believe that the stock market remains in expectation of exclusive releases for PS4 because, so far, the perception is that 2019 is a weak year for the console. In this regard, Damian Thong of Macquarie Group Ltd. informed the firm’s clients that the current rating for Sony and its games division went from positive to neutral: “We are moving to the sidelines until we can better assess the risks in the games segment.” In the same way, Goldman Sachs Group Inc. and Nomura Holdings Inc. decided to cut their Sony price per share forecasts.
Finally, Amir Anvarzadeh, analyst at Asymmetric Advisors Pte, said the outlook is not encouraging as the Sony gaming division has entered the phase of slowing growth and this indicates that PS5 will be released next fiscal year, which will end in March 2020, and the stock market already contemplates the costs of production, distribution and commercialization of the new platform.