Sony Stock Rises as Gaming Division Thrives Despite 'Star Sniper' Setback

Recently, Sony released its financial report for the second quarter of fiscal year 2025, corresponding to the third quarter of calendar year 2024. The report highlights robust performance in its gaming division, contributing to sustained growth in both revenue and profit for the group. Sony's gaming unit recorded net sales amounting to 1.1 trillion yen (approximately 515 billion RMB), marking a 12% year-on-year increase. Operating profit surged to 138.8 billion yen (around 70 billion RMB), reflecting a remarkable 184% growth compared to the previous year.

Despite this overall positive performance, the newly launched game "Star Sniper" met with significant setbacks, leading to its shutdown just a fortnight post-launch. Consequently, Sony also closed Firewalk Studios, the developer acquired for over a hundred million dollars. However, the sales of third-party games such as "Black Myth: Wukong" bolstered gaming revenues, achieving the noted 12% increase.

During the financial results call, Sony's President, CFO, and SIE Chairman Hiroki Totoki addressed concerns regarding "Star Sniper." He expressed that Sony is still in the learning phase concerning service-oriented games and highlighted that lessons from "Star Sniper's" failure have led to improvements across several areas.

Totoki conceded that developing new IPs is challenging, as their success often becomes apparent only post-launch. He emphasized the need for establishing substantial internal milestones, such as user testing, internal evaluation, and setting release windows, potentially completing tasks earlier than before.

Totoki also mentioned that the relative independence within Sony's business units can hinder game development. Moving forward, Sony plans to release its games at more opportune times to avoid cannibalizing sales with third-party games, thus optimizing game sales performance.

The report also disclosed that, to date, the PlayStation 5 (PS5) has sold 65 million units. Although there has been a year-on-year decline in PS5 sales, the PS5 Pro continues to show robust sales, outperforming its predecessor, the PS4 Pro during the same timeframe.

A further update from Sony's support page indicated the cessation of free adapters for the PlayStation Camera, essential for connecting with the PS5 and supporting the original PS VR. As of November 26, 2024, or until supplies last, the adapters will no longer be available. Users can apply for the adapter through a form or by contacting Sony support for details.