Sony PS5 Enters Latter Stage Of Its Life Cycle, Major Franchise Titles On Hold Until 2025
Portfolio Pulse from Franca Quarneti
Sony Group Corp. (NYSE:SONY) acknowledges the PlayStation 5 (PS5) is entering the latter stage of its life cycle, with sales projections reduced from 25 million to 21 million units for the current fiscal year. The company cites disappointing sales during the 2023 holiday quarter despite promotions. Sony anticipates a decline in PS5 sales momentum starting the next fiscal year (April 2024 - March 2025). Major PlayStation franchise releases are on hold until April 2025, impacting titles like 'God of War Ragnarok' and 'Marvel’s Spider-Man 2'. Despite this, Sony's gaming division reported record quarterly profits with $9.5 billion in revenue, driven by strong PS5 and PS4 game sales. Sony plans to diversify its game lineup with exclusive 'second-party' titles to boost PS5's appeal.
February 14, 2024 | 6:59 pm
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Sony's PS5 is nearing the end of its life cycle with reduced sales forecasts and major game releases delayed until 2025, but the gaming division reports record profits.
The news presents a mixed impact for Sony. On one hand, the reduction in sales forecast and delay in major game releases could be seen as negative. However, the record profits reported by Sony's gaming division, along with plans to diversify the PS5 game lineup, could mitigate negative perceptions and maintain investor confidence in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100