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



02/04/2022 5:21 AM


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.



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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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