Sony (SONY) stock was down on Tuesday after a former executive warned that PlayStation needs to change its hardware and software philosophy. Shuhei Yoshida, the former head of PlayStation Indies, told Skill Up’s Friends Per Second podcast that “clearly they just cannot do the same thing they have been doing.” Yoshida was specifically talking about PlayStation’s current strategy of releasing more powerful game consoles and releasing games that are high-end experiences.
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Yoshida’s concerns have to do with the technical plateau that the gaming industry faces. He pointed to increased graphics fidelity and higher frame rates, which have hit a point where the naked eye often can’t tell the difference. This makes it hard to justify a new console release where the only promise of advancement is better graphics, which likely would go unappreciated by consumers.
Sony’s strategy is one that has set it apart from other major game hardware developers. For example, Microsoft’s (MSFT) Xbox has shifted its focus to digital content and subscriptions with its Game Pass offering. Nintendo (NTDOF) has doubled down on portability with its Switch 2 offering fun experiences that don’t rely on the highest graphic fidelity.
Sony Stock Movement Today
Sony stock was down slightly on Tuesday but remained up 41.65% year-to-date. The stock has also rallied 63.16% over the past 12 months. PlayStation isn’t Sony’s only business, as it also offers film and music to consumers, allowing it to offer a diversified portfolio of entertainment properties.
Is Sony Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Sony is Moderate Buy, based on two Buy ratings over the past three months. With that comes an average SONY stock price target of $32.50, representing a potential 11.38% upside for the shares.
