Around $10 billion of value was wiped off Sony’s stock this week after it cut its sales forecast for its flagship PlayStation 5 console for the fiscal year. But analysts, who already thought Sony’s PS5 target was too lofty, told CNBC a bigger issue for the Japanese tech giant is the company’s declining margins in its key gaming business. Analysts are questioning why Sony’s gaming margin is not higher despite higher-margin products like digital sales of games and its PS Plus subscription service. The PlayStation DualSense controller and PlayStation 5 console. Jakub Porzycki | Nurphoto | Getty Images
Around $10 billion of value was wiped off Sony’s stock last week, after the Japanese tech giant cut its sales forecast for its flagship PlayStation 5 console for the fiscal year.
Analysts, who already thought Sony’s PS5 target was too lofty, told CNBC a bigger issue for the company are its declining margins in its key gaming business.
Sony this week announced it now expects to sell 21 million units of the PS5 in the fiscal year ending