Sony's prediction of upcoming sales for their PS5 in the first quarter of 2024 has decreased their market value by around $10 billion. Insane losses, explained below.
As is customary for publicly traded companies, they are required to disclose their financial performance and provide future guidance to their shareholders, who have a vested interest in the current and projected state of the company.
Sony recently updated its PlayStation 5 sales forecast for the first quarter of 2024, adjusting expected sales to 21 million units by the end of March 2024, down from an earlier estimate of 25 million. This reevaluation has led to a sharp decline in their market value.
Sony With Record Breaking Revenue – And Huge Downfall In Stock Value
As we draw closer to the end of the PS5's lifecycle, Sony are understandably not expecting to break new sales records, but this was worse than expected. Following the adjustment last week, Sony's market valuation declined by approximately $10 billion, as reported by CNBC.
But it's not all doom and gloom. They somewhat covered themselves by making record-breaking revenue during the crucial December quarter of last year, which benefited significantly from holiday sales. In fact, Sony announced a remarkable revenue of more than 3.75 trillion Japanese yen (approximately $24.9 billion) for the fiscal third quarter from October to December 2023, surpassing the expected 3.58 trillion yen.
For comparison: Microsoft ended its fourth and final quarter of 2023 with $56.2 billion in revenue and $20.1 billion in net income.
Where do you stand in the console wars? Will you be buying a PS5 still, or are you holding out for a PS6 at this point?