"Sony forecast annual sales at its gaming business would fall 6 percent to JPY 265.7 billion ($1.69 billion) due to lower hardware sales as its PlayStation 5 ages and as the industry grapples with a surge in memory chip prices. The Japanese company said it expects gaming profits to rise 30 percent due to higher first-party software sales and the absence of an impairment loss it recorded a year earlier."
"Sony said it would spend up to JPY 500 billion buying back up to 230 million shares. The group's shares pared losses and were up 2 percent in Tokyo. Market concern about the impact of artificial intelligence on its business and a perceived lack of growth catalysts have weighed on its shares in recent months."
"PS5 hardware sales are based on the amount of memory Sony can secure at "reasonable prices", with hardware profitability expected to be similar to a year earlier. The firm said it sold 1.5 million PS5 consoles in the fourth quarter, a 46 percent drop on the same period a year earlier. In March, Sony announced it would increase prices of the PS5, including a $100 bump in the United States, for the second time in less than a year."
"Its platform is expected to receive a major boost from the launch of Take-Two Interactive's delayed Grand Theft Auto 6, which is scheduled for release in November. "I am more optimistic than Sony and think the market is underestimating the impact of GTA 6," said Serkan Toto, founder of the Kantan Games consultancy. Sony said in February it has secured the minimum quantity of memory needed to manage the year-end shopping season."
Sony forecast annual sales for its gaming business to fall 6% to JPY 265.7 billion due to lower PlayStation 5 hardware sales as the console ages and due to a surge in memory chip prices across the industry. Gaming profits are expected to rise 30% because first-party software sales are higher and because an impairment loss recorded a year earlier will not recur. Sony plans to spend up to JPY 500 billion to buy back as many as 230 million shares. PS5 hardware sales depend on the amount of memory Sony can secure at reasonable prices, with hardware profitability expected to be similar to the prior year. Sony sold 1.5 million PS5 consoles in the fourth quarter, down 46% year over year, and expects a platform boost from the November release of Grand Theft Auto 6.
Read at Gadgets 360
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