Sony: despite the excellent results, the firm plunges into the stock market

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News business Sony: despite the excellent results, the firm plunges into the stock market

At the time of record financial results for each manufacturer, Sony is no exception. Video games are still going strong with the manufacturer. However, the future is not entirely rosy.

Summary

  • A year a little out of date
  • From top to bot real quick

A year a little out of date

This beginning of the year, from a financial point of view at least, has been busy. The video game world has witnessed landmark takeovers: the biggest deal in the industry ($12 billion) with the acquisition of Zynga by Take-Two, quickly overwhelmed by the gargantuan accord to 68 billion signed between Microsoft and Activision Blizzard. On a smaller but still impressive scale, the very recent acquisition of Bungie par Sony. In addition to these takeovers (which would not be the last of 2022), this start of the year is also synonymous with the publication of financial statements by manufacturers. Electronic Arts, Nintendo or Sony, all go through this mandatory box.

And it’s Sony’s that interests us: the Japanese firm, behind the creation of the PlayStation consoles, is struggling to do better than previous years. Let’s get along: she’s fine, but the records will be for another time. And several things testify to this. First, the number of PlayStation Plus subscribers: 48 million today, only 700,000 additional subscribers joined the service. We are a long way from the eight million gleaned between 2020 and 2021. Another marker of a slowdown: the operating profits earned by the firm are lower than the previous year. A drop probably due to the decrease in the sale of consoles, itself linked to the shortage. It is Oscar Lemaire, video game journalist specializing in the analysis of financial statements, who talks about it best:

From top to bot real quick

In its financial report, Sony clearly explains that it is revising its sales predictions for the PlayStation 5 downwards. If the firm expected to sell 14.8 million consoles at the end of the fiscal year (which takes place on March 31, 2022), it is today 11.5 million units that Sony expects to sell, i.e. a decrease of 22%. And it is clear that when we pile up all the news that has appeared in recent weeks, Sony’s share price has taken for its rank:

The stock price over the last six months (left), the stock price over the last 30 days (right)

Sony: despite the excellent results, the firm plunges into the stock marketSony: despite the excellent results, the firm plunges into the stock market

It is interesting to note that, however, at the end of 2021, Sony stock has never been so good: it reached the value of 15,520 yen (120 euros), a record in the history of the firm. And as they say “the higher we rise, the harder the fall“. The peak reached, the value remains around 14,000 yen before “falling”: it lost 2,000 yen on January 18… the day of the announcement of the takeover of Activision Blizzard by Microsoft. It therefore increases to 12,000 yen (€100) in value and stabilizes. Even the announcement of its takeover of Bungie does not raise it again. As mentioned above, financial statements do not bring “good” news, although they are often used as a means of seducing shareholders.

In any case, we will have to wait for Sony’s next plans to confirm or invalidate the trend: big exclusives are expected in the days and months to come (Horizon, Grand Touring 7, ForSpoken…) while the service Spartacus (competitor of Xbox Game Pass) should also be talked about.

Source : Sony’s financial statements – 1, 2, 3

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News business Sony: despite the excellent results, the firm plunges into the stock market Published on 02/03/2022 at 13:07 At the time of record financial results for each manufacturer, Sony is no exception. Video games are still going strong with the manufacturer. However, the future is not entirely rosy. Summary A year a little out…

News business Sony: despite the excellent results, the firm plunges into the stock market Published on 02/03/2022 at 13:07 At the time of record financial results for each manufacturer, Sony is no exception. Video games are still going strong with the manufacturer. However, the future is not entirely rosy. Summary A year a little out…

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