Previously, we reported that Sony lowered its sales target for PS5 in fiscal 2024 from 25 million units to 21 million units, and this adjustment has led to Sony's ** to a certain extent after the announcement, and it has been reported that Sony's total market value in the ** market has evaporated by about $10 billion. 
According to WCCFTECH, Sony's profit margin has also declined year-on-year recently. Sony's profit margin was only 6% last quarter, compared to 9% in the same period last year and about 12% to 13% in the same period before 2022. Jefferies analyst Atul Goyal finds the persistence of Sony's profit margins puzzling because he sees recent trends in the gaming industry as favorable to Sony, including but not limited to the popularity of digital games (Sony doesn't have to refund any fees to retailers), the rise of the live gaming industry, and the recent popularity of subscription membership services on consoles. According to the analysis, these favorable factors should have boosted Sony's profit margin to 20%. In addition, Serkan Toto, an analyst at Kantan Games, also believes that the PS5 can reduce hardware manufacturing costs, which can also improve Sony's profit margins.
However, WCCFTECH believes that the above analysts have ignored the impact of the cost of the game, and according to previous reports, we know that the production cost of "Marvel's Spider-Man 2" is three times that of the previous game, and the total cost even exceeds $300 million. Moreover, PlayStation has recently had the problem of chaotic management, and a number of service-oriented games have been cancelled from development, resulting in a huge waste of resources.
However, Sony has noticed the seriousness of the problem internally, and the newly appointed Sony chief operating officer and president Hiroki Totoki said in an interview that they are actively solving the problem and hope to find a suitable strategy to improve the company's profit margin performance.