Sony set to buy back stock after PS5 sales fall below estimates

According to Sony’s earnings report, they have managed to sell 19.3 million consoles of their Playstation 5 entry. Sony sold 2 million PS5 units this last quarter, which is considerably low compared to last year’s first quarter when they sold 3.3 million units. However, they did manage to capitalize on game sales which saw a significant improvement from last year’s 61.4 million to 70.5 million. (via Engagdet}

According to a report by Bloomberg, by the fourth fiscal quarter, Sony was reportedly operating at a 138.6 billion yen profit which in the grand scheme of things falls short of the 148.5 billion yen predetermined estimate. “The company forecast operating income of 1.16 trillion for the current fiscal year, also shy of estimates of 1.2 trillion yen.” As such, Sony said that it plans on buying back around $1.5 billion of its own shares after falling below the estimates.

From  Engadget:

Overall, its Game & Network Services (GSN) division earned 665 billion yen ($5.1 billion) this quarter, up slightly over last year. Sales for the full 2021 year were flat, up just 2 percent over 2020, and profits also changed little.

However, Sony is positive that sales will improve in the next quarter by 34%. This increase is attributed to the expected easier availability of chips that will allow them to manufacture more PS5 entries. The sale of third-party games is also expected to play a major role. Gamers should also expect the launch of PlayStation Plus Extra and Premium later in June as we had earlier reported which is also expected to help Sony tap into new markets.