Sony (SONY) stock slipped on Wednesday after the video game developer confirmed layoffs at Days Gone developer Bend Studio. The entertainment company didn’t say how many employees were affected, but reports claim roughly a third of the studio’s approximately 150 members were laid off.
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The Sony layoffs came after the company canceled a Bend Studio live-service game that was in development. The concept for the game was finished, but Sony pulled the plug on it earlier this year. That came around the same time a game being developed by Sony studio Blue Point was also canceled.
Days Gone fans worried about the fate of Bend Studio have nothing to fear. Sony said these layoffs “better position the studio for long-term success” and that it remains “confident in its future and creative direction.”
SONY Stock Movement Today
SONY stock slipped 0.52% as of Wednesday afternoon, but remains up 23.18% year-to-date. Bend Studio is only one of several game developers under the PlayStation brand. That, combined with the limited nature of the layoffs, explains why SONY stock didn’t experience a more significant impact from today’s job cut news. Bend Studio also lacks the big-name successes of other PlayStation studios, such as Naughty Dog or Insomniac.
Is Sony Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Sony is Strong Buy, based on three Buy and one Hold rating over the past three months. With that comes an average SONY stock price target of $29, representing a potential 11.26% upside for the shares.
Spark, TipRanks’ AI analyst, rates Sony an Outperform (79) with no price target. The AI analyst points to a “strong financial performance with robust growth and efficient operations” as a reason for the bullish stance.
