Sony Stocks Drop by $10 Billion After PS5 End-of-Cycle Announcement

Sony's shares recorded $10 billion this week following the announcement of the PlayStation 5 nearing its life cycle.

This comes in as Sony also cut back forecasted sales for its PS5 from 25 million units in previous predictions to 21 million.

According to analysts via CNBC News, the stock value drop is in response to the slowdown in the Japanese tech giant's gaming business amid lower costs for the console's hardware.

PS5, during its first years, was considered a rarity due to the hardware needed to manufacture the consoles being scarce and at a higher price.

The consoles are among the primary source of revenue for Sony amid its other products and businesses suffering a slowdown post-pandemic.

PS5 to Push Out More Exclusive Content

Despite the emerging business concerns on the product, PS5 is set to go on a three-month long run of releasing new exclusive games.

While no first-party exclusives are set to roll out this year, Sony will bring big hits like Final Fantasy 7 Rebirth, Rise of the Ronin, and Stellar Blade will soon come out

This is in addition to several planned exclusive titles like other X-Men and Ratchet & Clank games have already leaked to the public following the data breach on Insomniac.

The announcement comes in as Xbox, PlayStation's biggest competitor, also declared plans to release more exclusive games soon.

Microsoft, Nintendo Ups Game to Compete with PlayStation

While PlayStation's lofty position at the top of the gaming market is being rocked, its competitors have started to promote future plans for its top consoles.

Nintendo has earlier announced that Switch 2 is already in the works, albeit it will probably not come until "early 2025."

Microsoft also promised to bring its "largest technical leap" yet in the next-generation console in the Xbox series. No further details on the next installation have been given yet.