Sony’s stock value plunged by $10 billion after the company cut its predicted PS5 sales figures.
Sony’s stock lost $10 billion in value last week after the tech giant lowered its forecast for this year’s predicted PlayStation 5 sales.
However, this announcement belies a bigger issue according to financial analysts as reported by CNBC. Though the choice by Sony to drop its prediction of 25 million PS5 sales in the upcoming fiscal year to 21 million caused the company’s stocks to dive, this move is just a symptom of a bigger problem at the tech giant, according to Jefferies equity analyst Atul Goyal.
Goyal said that Sony’s “forecast cut for PS5 […] is not what is disappointing.” Rather, it comes down to a fall in the company’s gaming operating margin.
