Sony Struggles With VR Content and Sales Slump, Seeks New Strategies for PlayStation
Portfolio Pulse from Anusuya Lahiri
Sony Group Corp (NYSE:SONY) has paused PlayStation VR2 production due to unsold inventory, facing challenges in the VR market alongside Meta, Apple, and others. The industry sees consolidation, with job cuts and game cancellations. Sony's Q3 fiscal 2023 sales grew 22% YOY, and it explores new strategies like PC title access for PSVR2. Investors can access Sony through WBIL and MUSQ ETFs. SONY shares rose 2.08% in premarket trading.
March 18, 2024 | 12:12 pm
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NEUTRAL IMPACT
MUSQ ETF, offering exposure to Sony, may see impacts from Sony's VR market challenges and strategic decisions.
As an ETF with exposure to Sony, MUSQ may be indirectly affected by Sony's challenges and strategies in the VR market.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 40
NEUTRAL IMPACT
Sony halts PlayStation VR2 production due to unsold inventory, facing VR market challenges. Q3 fiscal 2023 sales grew 22% YOY.
Halting PSVR2 production reflects significant challenges in the VR market but exploring new strategies and Q3 sales growth may mitigate negative impacts.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Investors can gain exposure to Sony through WBIL ETF, which may be impacted by Sony's VR market challenges and strategic shifts.
As an ETF with exposure to Sony, WBIL may see indirect impacts from Sony's VR market challenges and strategic decisions.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 40
NEGATIVE IMPACT
Apple's Vision Pro headset faces obstacles in securing apps from major platforms, indicating challenges in the VR market.
Obstacles in securing apps for the Vision Pro headset may hinder Apple's progress in the competitive VR market.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Electronic Arts plans to lay off 5% of its employees, around 670 people, to streamline operations amid industry challenges.
Job cuts at EA may negatively impact the company's short-term performance but are aimed at streamlining operations.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 60
NEGATIVE IMPACT
Alphabet's YouTube faces similar challenges as Netflix in providing content for VR platforms like Apple's Vision Pro.
YouTube's hesitance to expand into VR content may indicate broader challenges in the VR content market.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Meta faces challenges in enriching VR offerings due to difficulty in drawing content and entertainment developers.
Difficulty in attracting sufficient content and entertainment developers for VR offerings may negatively impact Meta's VR market position.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Microsoft's divestiture of the Toys for Bob studio and job cuts in gaming divisions reflect industry consolidation.
Divestiture and job cuts may negatively impact Microsoft's gaming division in the short term, reflecting broader industry challenges.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 60
NEGATIVE IMPACT
Netflix's reluctance to provide apps for VR headsets like Apple's Vision Pro indicates challenges in VR content expansion.
Netflix's reluctance to provide apps for VR platforms may reflect broader content expansion challenges in the VR market.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50