- Sony Corp. (NYSE:SONY) stock dropped after the company gave up on a multimillion dollar video game barely a week after it launched
- This drop comes as the company prepares to shut down its live service video game, “Concord,” on the PlayStation 5 with full refunds to the few people who bought a copy of the game
- The game took eight years and US$200 million to develop, but sold as few as 25,000 copies between Sony’s PlayStation 5 console and PC platforms, with only a few hundred players (at most) online at any given time
- Sony Corp. stock last traded at US$95.48 per share and has risen 1.19 per cent since the year began
Sony Corp. (NYSE:SONY) stock dropped Tuesday after the company gave up on a multimillion-dollar video game barely a week after it launched.
The entertainment conglomerate’s stock closed more than 2 per cent lower on Tuesday.
This drop comes as the company prepares to shut down its live service video game, “Concord,” on the PlayStation 5, effective Friday, with full refunds to the few people who bought a copy of the game.
The game took eight years and US$200 million to develop, but sold as few as 25,000 copies between Sony’s PlayStation 5 console and PC platforms, with only a few hundred players (at most) online at any given time.
“Concord fans – we’ve been listening closely to your feedback since the launch of ‘Concord’ on PlayStation 5 and PC and want to thank everyone who has joined the journey aboard the Northstar,” game director with Firewalk Studios, Ryan Ellis, said in a post on the official PlayStation Blog. “However, while many qualities of the experience resonated with players, we also recognize that other aspects of the game and our initial launch didn’t land the way we’d intended.”
When the game was being developed, it had impressed Sony Interactive Entertainment’s CEO (at the time) Jim Ryan to acquire the studio.
The decision to discontinue “Concord” less than two weeks after it’s release has raised concerns among investors about Sony’s strategy in the competitive gaming market. “Concord,” a multiplayer shooter game, was launched with high expectations but struggled to maintain a consistent player base in a very crowded market that is already losing popularity as the crowd shifts to another fad.
Analysts suggest the market reaction reflects uncertainty about Sony’s ability to sustain its gaming segment’s growth amid such strategic shifts. While the company has a lineup of upcoming titles and continues to innovate in other areas, the discontinuation of “Concord” highlights the challenges of maintaining long-term engagement in the live service gaming sector.
Investors will be closely watching Sony’s next moves, particularly how it reallocates resources from “Concord” to other projects. It will likely be a topic brought up during its upcoming earnings report, scheduled for November 2024, and will provide further insights into its financial health and direction.
Sony Interactive Entertainment is a subsidiary of Sony Corp., one of the most comprehensive entertainment companies in the world, with a portfolio that encompasses electronics, music, motion pictures, mobile, gaming, robotics and financial services.
Sony Corp. (NYSE:SONY) stock last traded at US$95.48 per share and has risen 1.19 per cent since the year began.
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(Top image via the PlayStation Blog)
