Sony plunged $10 billion after its PS5 sales cut. But a bigger issue is its near decade low games margin
Publishing timestamp: 2024-02-18 18:18:29
Summary
Sony's stock value dropped after cutting sales forecast for PS5, but analysts are more concerned about declining margins in the gaming business despite higher-margin products like digital sales and PS Plus subscription. Operating margin in gaming business was just under 6% in December quarter, disappointing analysts. Analysts question why margins are low despite various tailwinds, such as high-margin products and decreasing hardware production costs. Software production costs, like the $300 million budget for "Spiderman 2," are believed to be squeezing margins.
Sentiment: NEGATIVE
Tickers: 6758.T-JP,
Keywords: video games, breaking news: technology, technology, gaming software, sony group corp, business news, sales,