The Strategist

Sony's market cap loses $25B due to chips shortage



02/04/2022 - 05:21



Sony's market value has fallen by $25 billion since the beginning of the year because of a shortage of chips for the PS5 game console. The pressure on the share price was also put by fears of increased competition with Microsoft, which recently agreed to buy Activision.



piqsels
piqsels
Sony's market value has fallen by $25.71 billion since the beginning of the year because of a shortage of chips, including for the release of its flagship PlayStation 5 game console, CNBC reported citing data from Refinitiv. The company's stock has fallen 13 percent since the beginning of the year.

The company announced a chip shortage problem that has forced Sony to cut its sales plans for its flagship set-top box on Feb. 2, according to CNBC. The company lowered its annual target from 14.8 million units to 11.5 million units. Revenue from Sony's gaming division fell 8% to 813.3 billion Japanese yen ($7.08 billion).

Pressure on Sony stock was also exerted by growing competition with Microsoft, said CNBC. In January, Microsoft announced plans to buy game developer Activision for more than $68 billion to strengthen its Xbox gaming division.

A few days later, Sony announced an agreement to buy Bungie, the developer of Halo and Destiny, for $3.6 billion.

source: cnbc.com




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