Benzinga - by Franca Quarneti, Benzinga Staff Writer.
Sony Group Corp. (NYSE: SONY) is "likely" to release a PlayStation 5 Pro later in 2024, following a reduction in sales forecast for the flagship console.
Analysts told CNBC this move is aimed at rejuvenating interest in the PlayStation 5 and providing an upgraded hardware option ahead of the highly anticipated release of Take-Two Interactive Software Inc.'s (NASDAQ: TTWO) Grand Theft Auto VI in 2025.
With the PlayStation 5 now over three years old since its November 2020 launch, Sony revised its sales forecast for the fiscal year ending in March from 25 million to 21 million units, anticipating a gradual decline in sales from the next fiscal year.
Analysts drew parallels with previous console cycles, noting that gaming companies often introduce refreshed hardware to stimulate sales when faced with declining unit sales.
"There seems to be a broad consensus in the game industry that Sony is indeed preparing a launch of a PS5 Pro in the second half of 2024," said Serkan Toto, CEO of Kantan Games. "And Sony will want to make sure to have a great piece of hardware ready when GTA VI hits in 2025, a launch that will be a shot in the arm for the entire gaming industry."
Despite expectations for a new console, Sony's gaming business faces challenges, including profit margins nearing decade lows.
George Jijiashvili, senior principal analyst at Omdia, suggested that Sony may maintain the price of the current PS5 even after the PS5 Pro release, considering the company's profit-driven strategy.
"Therefore, a scenario where Sony launches a PS5 Pro, but still experiences declining year-on-year hardware sales is very much within the realms of possibility," noted Jijiashvili.
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