PS5 SALES PLUNGE 46% AS SONY CUTS GAMING FORECAST

Sony's gaming division faces headwinds from elevated semiconductor prices, which are squeezing margins despite higher overall operating profit expectations. The 46% quarterly decline marks a significant slowdown in console sales momentum. Q4 typically represents strong demand during the holiday season, making the drop particularly notable. Memory chip costs have emerged as a primary constraint on the gaming business forecast. The price surge affects manufacturing costs for PS5 hardware and related components, pressuring profitability even as sales volumes decline. Sony projects $1.69 billion in gaming business revenue for the full year—a 6% decrease from prior year guidance. The company attributed the revised outlook to both semiconductor supply dynamics and market conditions. The forecast suggests ongoing challenges in the console market as manufacturers balance production costs against consumer demand and pricing power.