Summary
- Sony Group's share prices recently hit their highest closing value in 24 years.
- The all-time high was driven by optimism surrounding upcoming game releases from PlayStation's primary studios.
- Sony's last earnings report promised that major single-player PlayStation games would be released every year going forward.
The Sony Group shares hit an all-time high earlier this week at ¥3,338 ($22). The historic closing price breaks a 24-year record for Sony and was apparently driven by optimism surrounding the company's PlayStation division as it heads into a potentially very profitable year.
PlayStation is by far Sony's highest-grossing division, accounting for about a third of the company's earnings. The rest is split between Sony's other businesses, such as film and TV, anime, music, consumer electronics, etc. Earlier this year, Sony announced that the current generation of PS5 consoles is the most profitable ever, matching the cumulative earnings of the PS4 in less than four times. years. Moreover, with blockbuster game releases lined up for the second half of the PS5's lifecycle, including many from PlayStation's major in-house studios, Sony shareholders are likely very bullish on the company's projected massive earnings.
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This optimism was reflected in Sony Group's share price earlier this week on Tuesday, which closed at an all-time high of ¥3,338 ($22) thanks to an assessment by Australian financial firm Macquarie. The assessment forecast increased operating profits for Sony's next fiscal year, which starts in April 2025. A key reason behind Macquarie's revision was higher anticipated earnings from games developed by primary PlayStation studios in the following years. Sony confirmed during its last earnings call that it expects to release major single-player PlayStation games every year.
A huge increase in profitability is expected for Sony thanks to the upcoming major PlayStation games
Ambition and budgets for AAA games have increased in recent years, subsequently leading to longer development times. PlayStation had a strong presence in the first two years of the PS5 generation with games like God of War Ragnarok, Gran Turismo 7, Return, West Horizon forbidden, Ratchet and Clank: Rift ApartAnd so on As of 2023, however, Sony's only notable single-player releases have been Spider-Man 2 and Astro Bot. Both were successful, but demand for major new PlayStation games grew, especially from prominent studios like Naughty Dog, Santa Monica Studio, Guerrilla Games, and more.
These PlayStation studios have several projects in the works, many of which have spent a lot of time in development. Therefore, it is very likely that they will be ready for release in the coming years. With Sucker Punch's Yotei's ghost confirmed for 2025, it remains to be seen if Sony has any other PlayStation first party games planned for next year. However, aside from the first party, Sony is set to profit handsomely from massive third-party titles such as GTA 6which is scheduled for release in the fall of 2025 and is expected to be a huge seller of PS5 systems.
PlayStation 5
Sony's PlayStation 5 is part of the ninth generation of consoles and debuted with a launch lineup that included Demon's Souls and Astro's Playroom. The console comes with a Blu-ray disc, although a digital-only edition is also available for a cheaper price.
