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Sony’s Value Reportedly Dropped By $10 Billion Following Revised PS5 Sales Forecast

Sony’s decision to revise its sales forecast for the PS5 has reportedly resulted in the company’s value dropping by around $10 billion last week.

As reported last week, the console maker had originally planned to move 25 million consoles by the end of the financial year on March 31, 2024, but has revised its forecast to 21 million. Following this, shares dropped as much as 8.4% and closed down 6.5%, partly due to PS5’s revised sales forecast, and also due Sony’s gaming business posting a drop to 6% in operating margin.

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A report on CNBC claims that the drop in share price has had Sony’s stock value drop by about $10 billion, with Atul Goyal, analyst at Jefferies equity, telling the outlet that Sony’s new PS5 forecast wasn’t as disappointing as the lull in operating margin.

The analyst revealed that Sony’s margins should have been increasing during this period instead of seeing a decline, due to the fact of “various tailwinds that should have driven up the margins towards 20%,” which includes sales of digital games increasing and PlayStation Plus, which has a margin of 50%.

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.

Sony announced during its latest financials last week that the PS5 has shipped 54.8 million units worldwide.

[Source – VGC]