The tech giant Sony Group has its latest earnings release this week, and analysts will be looking for the latest updates on its consoles.
SONY – Weekly Chart
Sony Group shares found support at the $80.20 level on the Nasdaq and had initial resistance around the $88.75 mark.
With Microsoft closing its acquisition of Activision Blizzard, all eyes are on Sony PlayStation and Sony Interactive Entertainment after the company spent $3.6 Billion for gaming firm Bungie. The new business has since cut jobs, with it being in trouble before Sony acquired it. Playstation console sales are also falling, and Sony Group executives have moved to regain business control.
Some Bungie employees said that without the Sony buyout, Bungie was having problems with the poor performance of its Destiny 2 platform. The next extension of the title was pushed back to mid-2024 with the possibility that it could slip further following the layoffs. Shortly after Sony PlayStation bought the business, it was said that Destiny 2 had missed revenue targets by some 45%.
The gaming market has also weakened PC hardware manufacturers, reporting double-digit declines. A registered 6,000 jobs have been lost in 2023 in the gaming software market. Brands such as Ubisoft were forced to cancel titles, while others cut staff or closed down.
During the past three years, Sony PlayStation had problems delivering consoles due to the chip shortage. According to management, supply chain problems that hurt the PlayStation have been resolved. Customers frustrated at month-long waits for the PS5 had moved on to PC gaming and Microsoft’s Xbox.
Investors will look for positive overall group performance to see if the shares can target resistance. The earnings will be released ahead of the US market opening (9:30 a.m. Eastern Time).
