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SONY's Renowned PlayStation Architect to Reportedly Retire
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Sony Corporation’s (SONY - Free Report) executive vice president of the Sony Interactive Entertainment (SIE) division is set to retire by the end of September 2022, per a report from Bloomberg.
Per the report, Masayasu Ito will be supporting SIE's Platform Experience Group as an executive adviser until March 2023 as well as work on a mobility division focused on electric vehicles from October 2022.
Ito has a career spanning five decades at Sony. Initially, he worked on in-car audio equipment before switching to the console division in 2000. He led the development team for Play Station 4 and Play Station 4 Pro models as well as the latest generation PlayStation 5, added Bloomberg.
Despite heavy demand, the PlayStation 5 sales have been hit by severe pandemic-induced supply-chain issues and component shortages.
Inefficiencies in supply and logistics coupled with the voluntary retirement of Masayasu might weigh on the company’s performance in the short term. Weakness in video games market is an added concern for Sony.
Per a report from The NPD Group, overall total consumer spending on video games in the United States was $12.35 billion in the second quarter of 2022 (April to June), representing a decline of about $1.78 billion from the previous-year quarter. Increasing price of commodities and easing pandemic restrictions are major concerns for this industry, added the report.
In August, Sony was reportedly slapped with a lawsuit for allegedly “overcharging” millions of its PlayStation customers in the U.K. by exploiting its market dominance. Per the report, Sony allegedly imposed “unfair” terms and conditions on gaming developers/publishers that led to unfair pricing, which was eventually passed on to PlayStation end customers.
Sony’s Game & Network Services is grappling with a decline in sales of non-first-party titles, including add-on content and weak sales of first-party titles. In the first quarter of fiscal 2022, the segment’s sales were down 2% year over year to ¥604.1 billion. The company further slashed the segment’s revenue guidance due to revision in the software sales forecast.
The company now expects segment operating income to be ¥255 billion against the earlier guided figure of ¥305 million for the segment. Operating income for the segment is likely to be affected by decrease in software sales, unfavorable foreign exchange rates and higher expenses associated with the acquisition of Bungie. However, the company continues to expect 18-million-unit sales for its PlayStation 5 for fiscal 2022.
Sony currently has a Zacks Rank #3 (Hold). The stock has lost 30.1% in the past year compared with the industry’s fall of 31.5%
The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have jumped 1.7% in the past year.
The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 6% in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 10.3% of their value in the past year.
The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $4.04 per share, increasing 9.8% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.
Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 30.8% in the past yea
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SONY's Renowned PlayStation Architect to Reportedly Retire
Sony Corporation’s (SONY - Free Report) executive vice president of the Sony Interactive Entertainment (SIE) division is set to retire by the end of September 2022, per a report from Bloomberg.
Per the report, Masayasu Ito will be supporting SIE's Platform Experience Group as an executive adviser until March 2023 as well as work on a mobility division focused on electric vehicles from October 2022.
Ito has a career spanning five decades at Sony. Initially, he worked on in-car audio equipment before switching to the console division in 2000. He led the development team for Play Station 4 and Play Station 4 Pro models as well as the latest generation PlayStation 5, added Bloomberg.
Sony Corporation Price and Consensus
Sony Corporation price-consensus-chart | Sony Corporation Quote
Despite heavy demand, the PlayStation 5 sales have been hit by severe pandemic-induced supply-chain issues and component shortages.
Inefficiencies in supply and logistics coupled with the voluntary retirement of Masayasu might weigh on the company’s performance in the short term. Weakness in video games market is an added concern for Sony.
Per a report from The NPD Group, overall total consumer spending on video games in the United States was $12.35 billion in the second quarter of 2022 (April to June), representing a decline of about $1.78 billion from the previous-year quarter. Increasing price of commodities and easing pandemic restrictions are major concerns for this industry, added the report.
In August, Sony was reportedly slapped with a lawsuit for allegedly “overcharging” millions of its PlayStation customers in the U.K. by exploiting its market dominance. Per the report, Sony allegedly imposed “unfair” terms and conditions on gaming developers/publishers that led to unfair pricing, which was eventually passed on to PlayStation end customers.
Sony’s Game & Network Services is grappling with a decline in sales of non-first-party titles, including add-on content and weak sales of first-party titles. In the first quarter of fiscal 2022, the segment’s sales were down 2% year over year to ¥604.1 billion. The company further slashed the segment’s revenue guidance due to revision in the software sales forecast.
The company now expects segment operating income to be ¥255 billion against the earlier guided figure of ¥305 million for the segment. Operating income for the segment is likely to be affected by decrease in software sales, unfavorable foreign exchange rates and higher expenses associated with the acquisition of Bungie. However, the company continues to expect 18-million-unit sales for its PlayStation 5 for fiscal 2022.
Sony currently has a Zacks Rank #3 (Hold). The stock has lost 30.1% in the past year compared with the industry’s fall of 31.5%
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are Cadence Design Systems (CDNS - Free Report) , Badger Meter (BMI - Free Report) and Arista Networks (ANET - Free Report) . Badger Meter and Arista Networks each sport a Zacks Rank #1 (Strong Buy), whereas Cadence Design Systems carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have jumped 1.7% in the past year.
The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 6% in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 10.3% of their value in the past year.
The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $4.04 per share, increasing 9.8% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.
Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 30.8% in the past yea