Sony reduces PlayStation 5 sales goal

Sony announced that it’s reducing its sales forecast for the PlayStation 5, now expecting to sell 21 million units instead of the previously projected 25 million due to weaker sales during the holiday season. The company doesn’t plan to release any major games next year. Instead, it’s focusing on entertainment and image sensors.

Sony’s operating profit for the last quarter increased by 10% to$3.08 billion, driven by strong performances in its financial, movies, and music divisions. However, the games division saw a decline in profit, partly because of promotional efforts and fewer sales of its own game titles.

Despite efforts like promotions and discounts, Sony’s PS5 sales target was too ambitious. Monthly active users on the PlayStation network increased, and Sony sold 10 million copies of “Marvel’s Spider-Man 2”.

In other gaming news, Nintendo raised its Switch forecast, and Microsoft is expected to provide updates on its gaming business soon.

Sony’s chip division saw an 18% increase in profit, and it’s partnering with TSMC to build a new fab in Japan.

Sony recently canceled plans for a merger with Zee Entertainment in India.

The Indian market has great growth potential on a long-term basis, Totoki said.

“If we can find another opportunity that would replace this type of plan we will actively look at that and we also need to reformulate our organic growth strategy,” Totoki said.

Sony’s shares closed down 0.5% ahead of earnings. They have gained 9% this year.