The impact of the global downturn in consumer spending on the company’s entertainment business
To show its concern about the effects of the global decline in consumer spending on its entertainment sector, Sony Group Corp. provided a conservative earnings prediction for the current fiscal year.
For the fiscal year ending in March 2024, the company predicted operating profits of 1.17 trillion yen ($8.7 billion), less than experts’ forecast of 1.27 trillion yen.
PlayStation game sales are expected to decrease this fiscal year.
This was mostly attributable to Sony’s PlayStation division, where sales of PlayStation games are expected to decline this fiscal year despite the company’s predictions falling short of expectations.
The delay in the debut of the console—which didn’t happen until 2020—indicates Sony’s inability to make money off the hardware through more lucrative software and subscription sales.
The current fiscal year, according to analysts, will be crucial to the success of the company’s PS5 release, which is getting ready to ramp up. The PS5 still needs to create the broad user base necessary to obtain a generous sales cycle of software and hardware supporting each other.