Sony ended the quarter with a 13% increase in revenue, but the fiscal year forecast for the number of PlayStation 5 consoles shipped was reduced from 14.8 million to 11.5 million units, and the forecast revenues for the games division were reduced by 6%. Sony’s stock price after the market opened on Thursday reacted to those forecasts with an 8.6% decline.
Sony shares plunge 8.6% after lowering PlayStation 5 shipment forecast
Sony representatives, as Bloomberg explains, have exacerbated investor pessimism with statements about the high likelihood of continued component shortages through calendar year 2022, as well as logistical issues. The success of Sony’s film business and strong revenue from Apple’s smartphone image sensors somewhat offset the negative impression of the quarterly report, but the long-term outlook for Sony’s gaming business has raised serious concerns among investors.
Even the absence of structural changes in the market, according to experts at Asymmetric Advisors, would not allow Sony to improve its financial performance in the next quarter, especially given the possibility of abandoning the confinements in the world. . Yes sony launches its subscription streaming service by next quarter, this could negatively impact the profitability of its business.
Sony PS5 sales are pretty steady – just over 17 million units
Sony released its financial report for the third quarter of fiscal 2021. Driven by strong performance in the Film & TV, Music, Semiconductor and Financials businesses, its revenue reached 3,031.3 billion yen ($26.4 billion), a year-on-year increase. by 13%. The company’s operating profit for the quarter was 465.2 billion yen ($4 billion). Excluding one-time factors such as holdings, asset write-downs and COVID-19 fund expenses (this year and the prior year), operating profit for the quarter was up 15% year-over-year. However, the sale of Sony PS5 is quite good in terms of operating profit.
Sony’s gaming and networking service as a whole had sales of 813.3 billion yen ($7.1 billion), down 8% year-on-year. The decrease is mainly due to lower sales of hardware and peripherals; lower sales of non-proprietary games (including in-app purchases) and sales of proprietary games. However, the gaming and network services segment’s operating profit increased by 121 billion yen ($1 billion). This is mainly due to the losses of the Sony PS5 sold below cost price; and the reduction of commercial management costs.
Additionally, Sony lowered its fiscal 2021 sales guidance for its Games and Network Services segment; due to Sony PS5 sales falling short of expectations. As of December 31, 2021, the PS5 has sold a total of 17.2 million units. In the third fiscal quarter, Sony PS4 sold 200,000 units; Sony PS5 sold 3.9 million units and games sold 92.7 million copies (11.3 million first-party games). The digital version of the game accounts for 62%. Sony PS+ subscription has 48 million subscribers and 111 million monthly active users.