Sony Is the Worst Performer Among Gaming Giants, with a $15 Billion Stock Value Drop Billion Year-to-Date

May 19, 3:21 pm

After grossing $27.4 billion in the fiscal year 2023, 17% more than the year before and way more than any other gaming company, Sony is facing plunging revenue and shipments. Due to the lack of major exclusive titles and waning interest in the PlayStation 5 console, the Japanese gaming giant expects its gaming-related revenue to drop in the upcoming fiscal year, which has significantly impacted its stock price.

According to data presented by AltIndex.com, Sony is the worst performer among the gaming giants in 2024, with a $15 billion stock value drop year-to-date.

The Only Loser Among the Top Five Gaming Companies

For years, the tech giant Sony has dominated the gaming industry, having three out of the five best-selling consoles of all time. However, its ninth-generation console, PlayStation 5, is far from the sales figures of its predecessors. So far, Sony has shipped over 55 million PlayStation 5 consoles worldwide, ranking it the fifteenth best-selling gaming console of all time, one place behind Xbox.

The console will most likely remain in the same position this year as its global sales continue to wane. Last year, Sony shipped 20.8 million of its gaming consoles, slightly below a revised 21 million target. However, this figure is expected to drop to 18 million units in 2024. The shrinking sales forecast caused concerns among investors, cutting Sony`s stock price by 11% and wiping off almost $15 billion of its stock value year-to-date.

In January, the market cap of the gaming giant amounted to $116.5 billion; last week, it was $101.8 billion. Furthermore, while Sony`s stock price dropped, all other gaming giants saw their values increase. For instance, its longtime rival in the gaming console arena, Microsoft, added $334 billion to its stock value, an 11% increase year-to-date. The Chinese gaming giant Tencent saw even more significant growth, with its market cap jumping by 36% or $129 billion in five months. Statistics show NetEase increased its stock value by 10% or $6.3 billion year-to-date, and Nintendo followed with a $2.8 billion and 5% increase in this period.

Sony`s Five-Year Stock Return is Still Over 70%

Despite the setback of losing nearly $15 billion in stock value since the start of the year, and with the stock price still 34% below the all-time high of $127 in January 2022, there is room for optimism. Sony`s five-year stock return remains a robust 70%, indicating the potential for recovery.

Assuming an investor had bought $1,000 worth of Sony stocks five years ago, their investments would grow to over $1,700 now. Also, according to the AltIndex platform, Sony stocks have an AI score of 58 out of 100 and are designated with a hold signal, suggesting stability.

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