Japanese electronics maker and gaming giant Sony saw its shares slide today following its big announcement in New York of its next generation PlayStation 4 console. Investors do not seem impressed, as Sony ended today down by 1.77% at 1,331 yen ($14.26) on Tokyo’s Nikkei index. Ratings agency Fitch warned the new gadget will probably not make any difference in turning the firm’s fortunes around.
Gartner consumer technologies research director Brian Blau said during the New York event that it was odd that Sony did not have a physical device to showcase before the audience. He believes that Sony was just trying to generate a buzz about the console. Toshiyuki Kanayama, senior market analyst at Monex Inc., said that the probable reason for the fall of shares is that “investors might want to wait and see the reaction from consumers to the PS4 before actively buying Sony shares, as its PS3 was not really successful.” The PlayStation 3 only sold about 75 million units, which is half of the 155 million units of the PlayStation 2 that have been sold in total.
Yesterday, Sony announced it would sell its 6% stake in M3, Inc., a company that supplies online medical information to doctors, to Deutsche Securities, to obtain a one-time gain of 115 billion yen (approx. $1.23 billion). This is Sony’s latest asset sale as it tries to reach a full-year profit, at a time when a massive corporate overhaul is going on. Generally, Japan’s electronics sector have been suffering from a wide array of problems, which includes strategic mistakes, slowing demand in key export markets, fierce overseas competition, and a strong yen.
[via The New Age]