Weakening video game branch plays tricks on Sony


The Japanese electronics and entertainment giant Sony expects to record lower results this year. Among other things, the game division will perform less. The sale of the Playstation 4 game console is expected to flatten further and there is no successor for this former success issue.

Sony believes that the operating profit this current broken financial year amounts to 810 billion yen, approximately 6.5 billion euros. In the past financial year, which ran until 31 March, this result amounted to more than 894 billion yen. At the computer game branch, the operating result fell from 311 billion yen this year to 280 billion yen.

The concern is increasingly focusing on music, film and games. The shift is intended to make up for the weakening sales of televisions and other consumer electronics. Not all investors are equally convinced of the success of that change of course. For example, the activist investor would direct Third Point to the sale of business units, including the Sony film branch.

By: Nicholas de Kramer

Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at nicholas.dekramer@economicinform.com

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