Sony shares hit record highs

Sony Group shares hit an all-time high of ¥3,338 ($22) earlier this week. The historic closing price breaks Sony's 24-year-old record and was apparently fueled by optimism surrounding the company's PlayStation division, which is heading for a potentially very profitable year.

PlayStation is by far Sony's highest-grossing division, accounting for roughly one-third of the company's revenue. The rest is split between Sony's other businesses, such as film and television, anime, music, consumer electronics, etc. Earlier this year, Sony announced that the current generation of PS5 consoles is the most profitable ever, matching the cumulative earnings of the PS4 in less than four years. Additionally, with blockbuster releases for the second half of the PS5's lifecycle, including many from PlayStation's main internal studios, Sony shareholders are likely very optimistic about the company's massive projected profits.

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This optimism was reflected in Sony Group's share price earlier this week on Tuesday, which closed at an all-time high of ¥3,338 ($22) thanks to the rating of the Australian financial company Macquarie. The rating assumed increased operating profits for Sony's upcoming fiscal year, which is expected to begin in April 2025. The main reason for Macquarie's revision was higher expected revenue from games developed by PlayStation's first-party studios in the coming years. During its latest earnings call, Sony confirmed that it expects to release major PlayStation single-player games every year going forward.

Huge increase in profitability expected for Sony due to major upcoming PlayStation games

Ambitions and budgets for AAA games have increased in recent years, resulting in longer development times. PlayStation had a strong first-party position in the first two years of the PS5 generation with games like God of War Ragnarok, Gran Turismo 7, Return, Horizon Forbidden West, Ratchet and Clank: Rift Apartetc. However, as of 2023, they were Sony's only notable single-player releases Spider-Man 2 and Astro Bot. Both were successful, but demand for major new PlayStation games grew, especially from top studios like Naughty Dog, Santa Monica Studio, Guerrilla Games, and others.

These PlayStation studios have several projects in the works, many of which have spent a long time in development. So it is very likely that they will be ready for release in the coming years. With Sucker Punch's Ghost of Yotei confirmed for 2025, it remains to be seen if Sony has any more flagship first-party PlayStation games planned for next year. However, aside from first-party titles, Sony is set to make a massive profit from massive third-party titles such as GTA 6which is scheduled for release in Fall 2025 and is expected to be a big seller for the PS5 system.

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PlayStation 5

Sony's PlayStation 5 is part of the ninth generation of consoles and debuted with a launch lineup that included Demon's Souls and Astro's Playroom. The console comes with a Blu-ray disc, although only a digital edition is available for a cheaper price.