Sony has lost $10 billion in value after lowering projected sales of PlayStation 5

Sony said it expects about 21 million PlayStation 5 consoles to be sold in the fiscal year ending in March. This is down from the previous forecast of 25 million. As a result, the company’s value fell by about $10 billion.

According to CNBC, analysts had previously reported that 25 million was too high a target. In addition, they said that console sales are not the company’s main problem, unlike the decline in profits in its key gaming business.

In the quarter that ended in December, only 6% of the company’s revenue came from the gaming business. A year earlier, this figure was 9%. In the quarter from January to March 2022, Sony’s gaming business revenue was at the level of 12-13%.

“Their rev (revenue) on digital sales, add-on-content, digital-downloads are at all time highs… And yet their margins are at decade-lows. This is just not acceptable,” commented Atul Goyal, Jefferies equity analyst.