https://www.bloomberg.com/news/arti...-most-since-2016-on-weak-playstation-4-demand
Sony Corp. shares fell the most in two and a half years after reporting slower growth in its PlayStation business and a cut in revenue forecasts for the year, becoming the latest big technology company to suffer from the slowing global economy.
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“It’s definitely not as positive as the headline numbers would suggest. It feels slightly negative overall,” said Andrew Jackson, head of Japanese equities at Soochow CSSD Capital Markets in Singapore.
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With fewer games in store for the already-aging PlayStation 4 and Sony’s own Xperia phone business still bleeding money, Chief Executive Officer Kenichiro Yoshida will have to prove that Sony’s turnaround can continue instead of peaking this year. The mobile division continued to struggle, with an operating loss of 15.5 billion yen during the quarter, the fourth straight period. Yoshida has so far rebuffed pressure to sell off the unit, saying it is vital for pushing innovation including 5G-related research.
“The market is closely watching for a turnaround in the mobile communications business, but it looks things are worse year-on-year due to a decrease in smartphone unit sales,” Jackson said.
Sony Corp. shares fell the most in two and a half years after reporting slower growth in its PlayStation business and a cut in revenue forecasts for the year, becoming the latest big technology company to suffer from the slowing global economy.
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“It’s definitely not as positive as the headline numbers would suggest. It feels slightly negative overall,” said Andrew Jackson, head of Japanese equities at Soochow CSSD Capital Markets in Singapore.
---
With fewer games in store for the already-aging PlayStation 4 and Sony’s own Xperia phone business still bleeding money, Chief Executive Officer Kenichiro Yoshida will have to prove that Sony’s turnaround can continue instead of peaking this year. The mobile division continued to struggle, with an operating loss of 15.5 billion yen during the quarter, the fourth straight period. Yoshida has so far rebuffed pressure to sell off the unit, saying it is vital for pushing innovation including 5G-related research.
“The market is closely watching for a turnaround in the mobile communications business, but it looks things are worse year-on-year due to a decrease in smartphone unit sales,” Jackson said.