TOKYO, Feb 3 (Reuters) – Shares of Sony Group Corp (6758.T) fell as much as 8.8% in early trading on Thursday in Tokyo, after four straight days of gains as concerns resurfaced over its gaming business amid component shortages and competition from heavyweight rivals.
Sony fell nearly 13% last month after rival Microsoft announced it would buy “Call of Duty” developer Activision Blizzard, but more recently regained some ground when the group made its own deal for “Destiny” developer Bungee.
TOKYO, Feb 3 (Reuters) – Shares of Sony Group Corp (6758.T) fell as much as 8.8% in early trading on Thursday in Tokyo, after four straight days of gains as concerns resurfaced over its gaming business amid component shortages and competition from heavyweight rivals.
Sony fell nearly 13% last month after rival Microsoft announced it would buy “Call of Duty” developer Activision Blizzard, but more recently regained some ground when the group made its own deal for “Destiny” developer Bungee.
The bottlenecks forced Sony’s full-year PS5 sales target to be lowered to 11.5 million units from 14.8 million units. Console manufacturers are often hit by sales of new hardware as they build their install base.
There is also speculation that Sony will be forced to follow Microsoft’s move to offer games on its Game Pass subscription service, which could squeeze margins.
“We see the division’s profitability coming under a lot of pressure going forward,” Amir Anvarzadeh, market strategist at Asymmetric Advisors, wrote in a note.
The bottlenecks forced Sony’s full-year PS5 sales target to be lowered to 11.5 million units from 14.8 million units. Console manufacturers are often hit by sales of new hardware as they build their install base.
There is also speculation that Sony will be forced to follow Microsoft’s move to offer games on its Game Pass subscription service, which could squeeze margins.
“We see the division’s profitability coming under a lot of pressure going forward,” Amir Anvarzadeh, market strategist at Asymmetric Advisors, wrote in a note.
