![\"Sony](\"https:\/\/www.dfcint.com\/dossier\/wp-content\/uploads\/2020\/02\/sonystock.jpg\")
<\/p>\n","protected":false},"excerpt":{"rendered":"On Monday February 3, Sony Corporation (NYSE: SNE) announced total revenue results that were flat, but down significantly in the video game division.\u00a0 Ironically Sony stock rose on the news.\u00a0 This was in sharp contrast to Nintendo that a few days before had seen its stock drop after reporting a significant revenue increase.<\/p>\n
The recent third fiscal quarter for Sony ended on December 31, 2019.\u00a0 Overall revenue in the quarter was up 3% over Q3 2018.\u00a0 However, net income was down 46% versus Q3 2018.<\/p>\n
The performance of the Games and Network Services Division was worse.\u00a0 For Q3 2019, revenue was down 20% over Q3 2018.\u00a0 For the nine-month period total revenue in the division was down 15%.<\/p>\n
During the earnings call CFO Hiroki Totoki emphasized the long-term potential of the game business as a major factor.\u00a0 The emphasis was that the PlayStation 4 business is not down as much as it would normally be because of growth in the ongoing network services division.<\/p>\n
In other words, services like PlayStation Plus are keeping consumers engaged and should help ease a smooth transition to PlayStation 5. PlayStation Plus subscribers reached 39 million with cumulative PlayStation 4 hardware units 109 million.<\/p>\n
Investors reacted by pushing Sony stock up 3.5% on February 4.\u00a0 This was the highest level it had been since the first part of the century and the PlayStation 2 launch way back in 2001.\u00a0 However, Sony investors are fickle and early on February 5, most of those gains had been erased.<\/p>\n
It is clear Sony is at a crucial crossroads.\u00a0 The game business remains a potentially lucrative but highly uncertain growth engine.\u00a0 Management turmoil in the game division, coupled with increased competition means the PlayStation 5 could struggle to reach the peaks of the highly successful PlayStation 4.<\/p>\n
The next few months will be critical for Sony.\u00a0 Investors are watching every move.\u00a0 If Sony is successful with the PlayStation 5, the stock should look like a bargain in coming years.\u00a0 However, if the new system disappoints lookout.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
On Monday February 3, Sony Corporation (NYSE: SNE) announced total revenue results that were flat, but down significantly in the video game division.\u00a0 Ironically Sony stock rose on the news.\u00a0 This was in sharp contrast to Nintendo that a few days before had seen its stock drop after reporting a significant revenue increase. The recent […]<\/p>\n","protected":false},"author":4,"featured_media":17201,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[74],"tags":[450,31],"_links":{"self":[{"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/posts\/17200"}],"collection":[{"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/comments?post=17200"}],"version-history":[{"count":3,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/posts\/17200\/revisions"}],"predecessor-version":[{"id":17204,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/posts\/17200\/revisions\/17204"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/media\/17201"}],"wp:attachment":[{"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/media?parent=17200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/categories?post=17200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/tags?post=17200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}