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SONY Introduces Slimmer PlayStation 5: Major Highlights
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Sony Corporation (SONY - Free Report) announced the launch of a PlayStation 5 (PS5) model, which will come with an attachable ultra-HD Blu-ray disc drive and a 1TB solid state drive (SSD) for more internal storage.
Compared with earlier PlayStation models, PS5 is much slimmer, with about 30% less volume and 24% lighter. This new model has four separate cover panels, with the bottom in matte finish while the top portion has a glossy look.
SONY added that the new PS5 model will be available from November 2023 in the United States at selected local retailers and direct.playstation.com. The model will be rolled out globally in the subsequent months. This will become the only model available once the existing inventory of current PS5 model has been sold out, added management.
In the United States, the new PS5 model with ultra HD Blu-ray disc drive will be priced at $499.99 while PS5 Digital Edition will carry a tag of $449.99. In Japan, the new PS5 model with ultra HD Blu-ray disc drive will cost ¥ 66,980 while PS5 Digital Edition will be charged ¥ 59,980.
The new model will come with a horizontal stand and consumers can buy a vertical stand compatible with all PS5 models for $29.99.
The launch of new PS5 just ahead of the holiday season is expected to boost SONY’s Game & Network Services (G&NS) revenues. Its gaming segment is the largest contributor to the top line. It is also investing in research and development to capitalize on the lucrative opportunity presented by live services games and the sale of add-ons for titles. The company forecasts the market for add-on style games to become a $19 billion opportunity by 2026.
In the fiscal first quarter, sales in the GN&S segment were up 28% year over year to ¥771.9 billion. The upside was driven by positive impacts of forex movement, higher sales of first-party titles and improving hardware sales. SONY sold 3.3 million units of PS5 in fiscal first quarter, up 38% year over year. The company continues to expect selling more than 25 million units of its PlayStation 5 in the current year. In the last fiscal year, it sold 19.1 million units of Play Station 5.
For the current year, management anticipates revenues from this particular segment to be ¥4,170 billion. Given the strengthening momentum in the GN&S and Music segments’ sales, SONY has revised its outlook for the fiscal year ending Mar 31, 2024. It now projects sales of ¥12,200 billion compared with the earlier guidance of ¥11,500 billion.
Net income is now estimated to be ¥860 billion compared with the prior guidance of ¥840 billion. Operating income is projected to be ¥1,170 billion. Operating cash flow is suggested to be ¥1,250 billion.
At present, SONY carries a Zacks Rank #3 (Hold). Shares of the company have gained 31.1% in the past year compared with the sub-industry’s and S&P composite’s growth of 27.4% and 19.2%, respectively.
The Zacks Consensus Estimate for Asure Software’s 2023 EPS has increased 5.9% in the past 60 days to 54 cents.
Asure Software’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 676.4%. Shares of ASUR have surged 78.5% in the past year.
The Zacks Consensus Estimate for Synopsys’ fiscal 2023 EPS has improved 2.5% in the past 60 days to $11.09. SNPS’ long-term earnings growth rate is 16.4%. Shares of SNPS have climbed 72% in the past year.
The Zacks Consensus Estimate for VMware’s fiscal 2024 EPS has improved 5.9% in the past 60 days to $7.23.
VMware’s earnings outpaced the Zacks Consensus Estimate in two of the last four quarters, while missing it in the remaining quarters. The average earnings surprise is 1.2%. Shares of VMW have jumped 60.9% in the past year
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SONY Introduces Slimmer PlayStation 5: Major Highlights
Sony Corporation (SONY - Free Report) announced the launch of a PlayStation 5 (PS5) model, which will come with an attachable ultra-HD Blu-ray disc drive and a 1TB solid state drive (SSD) for more internal storage.
Compared with earlier PlayStation models, PS5 is much slimmer, with about 30% less volume and 24% lighter. This new model has four separate cover panels, with the bottom in matte finish while the top portion has a glossy look.
SONY added that the new PS5 model will be available from November 2023 in the United States at selected local retailers and direct.playstation.com. The model will be rolled out globally in the subsequent months. This will become the only model available once the existing inventory of current PS5 model has been sold out, added management.
Sony Corporation Price and Consensus
Sony Corporation price-consensus-chart | Sony Corporation Quote
In the United States, the new PS5 model with ultra HD Blu-ray disc drive will be priced at $499.99 while PS5 Digital Edition will carry a tag of $449.99. In Japan, the new PS5 model with ultra HD Blu-ray disc drive will cost ¥ 66,980 while PS5 Digital Edition will be charged ¥ 59,980.
The new model will come with a horizontal stand and consumers can buy a vertical stand compatible with all PS5 models for $29.99.
The launch of new PS5 just ahead of the holiday season is expected to boost SONY’s Game & Network Services (G&NS) revenues. Its gaming segment is the largest contributor to the top line. It is also investing in research and development to capitalize on the lucrative opportunity presented by live services games and the sale of add-ons for titles. The company forecasts the market for add-on style games to become a $19 billion opportunity by 2026.
In the fiscal first quarter, sales in the GN&S segment were up 28% year over year to ¥771.9 billion. The upside was driven by positive impacts of forex movement, higher sales of first-party titles and improving hardware sales.
SONY sold 3.3 million units of PS5 in fiscal first quarter, up 38% year over year. The company continues to expect selling more than 25 million units of its PlayStation 5 in the current year. In the last fiscal year, it sold 19.1 million units of Play Station 5.
For the current year, management anticipates revenues from this particular segment to be ¥4,170 billion. Given the strengthening momentum in the GN&S and Music segments’ sales, SONY has revised its outlook for the fiscal year ending Mar 31, 2024. It now projects sales of ¥12,200 billion compared with the earlier guidance of ¥11,500 billion.
Net income is now estimated to be ¥860 billion compared with the prior guidance of ¥840 billion. Operating income is projected to be ¥1,170 billion. Operating cash flow is suggested to be ¥1,250 billion.
At present, SONY carries a Zacks Rank #3 (Hold). Shares of the company have gained 31.1% in the past year compared with the sub-industry’s and S&P composite’s growth of 27.4% and 19.2%, respectively.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the broader technology space are Asure Software (ASUR - Free Report) , Synopsys (SNPS - Free Report) and VMware , sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Asure Software’s 2023 EPS has increased 5.9% in the past 60 days to 54 cents.
Asure Software’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 676.4%. Shares of ASUR have surged 78.5% in the past year.
The Zacks Consensus Estimate for Synopsys’ fiscal 2023 EPS has improved 2.5% in the past 60 days to $11.09. SNPS’ long-term earnings growth rate is 16.4%. Shares of SNPS have climbed 72% in the past year.
The Zacks Consensus Estimate for VMware’s fiscal 2024 EPS has improved 5.9% in the past 60 days to $7.23.
VMware’s earnings outpaced the Zacks Consensus Estimate in two of the last four quarters, while missing it in the remaining quarters. The average earnings surprise is 1.2%. Shares of VMW have jumped 60.9% in the past year