Sony Stock Dips as Videogame Sales Fell in August but Hover Above 2020 Levels
Sony stock price at $71.21, a slight dip as of 08:58 AM EDT Pre-Market trading.
Sales in the videogame industry decreased year over year for the tenth consecutive month compared to particularly difficult 2021 comparisons; nonetheless, the trajectory continued to improve for a fifth month, largely due to the ongoing recovery in game hardware.
According to NPD Group, overall sales decreased 5% from the previous August to $4.104 billion, declining again in accordance with its largest component: game content sales, which decreased 6% to $3.591 billion. Although the total of $4.104 billion was lower than the $4.307 billion from a year earlier, it was still more than the $4.07 billion for August 2020. (Total videogame sales had decreased by 9% in July and by 11% in June.) The total amount spent so far this year is $34.6 billion. Compared to the same period in 2021, this is down 9%, while it is up 3% from the same period in 2020 ($33.5 billion).
The ever-improving supply of the next-generation PlayStation 5 (NYSE:SONY) and Xbox Series (NASDAQ:MSFT) consoles, as well as the continued strength of Nintendos last-generation Switch, helped drive a 14% year-over-year increase in hardware dollar sales to $375M in August (OTCPK:NTDOY). Unit and dollar sales for PlayStation 5 were the highest in August, but Switch has sold the most units and generated the most dollars year to date. Hardware spending has decreased by just 4% so far this year, to $2.9 billion.
August saw an 18% decline in accessory sales to $138 million as gamepad and headset purchases decreased. The PS5 DualSense Wireless Controller Midnight Black (SONY) was once again the best-selling item for the month, while the Xbox Elite Series 2 Wireless Controller has dominated sales for the whole year (MSFT). Spending on accessories so far this year is down 14% to $1.4 billion.
Regarding game content, Saints Row: The Third came in second place as Augusts best-selling game, barely ahead of the yearly football series Madden NFL 23 (NASDAQ:EA) (Plaion). Marvels Spider-Man, which was the 84th best-selling book last month, took the third position (SONY). Elden Ring (OTCPK:NCBDY), the best game of the year, dropped to No. 4 as a result of them.
Top games ranked
The top 10 games in terms of dollar sales are as follows: Number five is MultiVersus (NASDAQ:WBD), followed by Mario Kart 8 (OTCPK:NTDOY), number six is Xenoblade Chronicles 3, number eight is Lego Star Wars: The Skywalker Saga, number nine is MLB: The Show 22, and number ten is Minecraft (OTCPK:NTDOY).
Due to both weaker economic demand and gamers continued return to business as usual, expenditure on mobile games continues to decrease. The hit wasnt as dramatic as Julys, though, and users of Google Play (GOOG) (GOOGL) spent 22% less than they did last year (compared to a 1.2% decline on Apples (AAPL) App Store).
Sony stock leading the electronics industry?
Sony Group Corp. (SONY) stock is towards the top of the Consumer Electronics sector with a 65 InvestorsObserver rating. SONYs 65 overall grade indicates that the stock performs better than 65 percent of all stocks and outperforms 86 percent of stocks in the Consumer Electronics sector. More on Investors Observer.
Featured Image – Megapixl (C) Baronefirenzeit
Author: Jowi Kwasu
Market Jar Media Inc.
#170 – 422 Richards Street
Vancouver, BC, Canada
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