Sony (NYSE:SONY) shares are down fractionally in the final minutes of today’s trading, and there seems to be one major reason behind the loss. Sony recently made some cuts in its gaming operations, which likely makes it good news that it’s probably not in the running for Paramount (NASDAQ:PARA) anymore.
Perhaps the biggest cut brought up is in its virtual reality (VR) operations. Apparently, PS VR2 will be the last such entry from Sony, as sources revealed that Sony is “…making deep cuts to funding for VR games.” Those already in development may be all right, but others likely won’t get the same opportunity. Interestingly, only two virtual reality games are currently in development.
Moreover, Sony is shutting down its rewards program, and users have until the end of this year—December 31, 2024—to claim any outstanding bonus points.
A Pivot Elsewhere?
A look at these points might convince you that Sony is having issues with ready cash. That doesn’t seem to be the case, though, as reports note it’s poised to buy the entire Queen catalog in a 10-figure deal. Yes, over $1 billion will get Sony the entire Queen catalog, giving Sony most of the rights to everything Queen-related except live performances.
Further, Sony recently purchased Alamo Drafthouse, which was widely regarded as one of the leading names in movie theaters around. Some even regard this as a good way to draw more attention to theatrical-release films, and if some of those happen to be Sony titles, well, so much the better for Sony.
Is Sony a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on SONY stock based on three Buys assigned in the past three months, as indicated by the graphic below. After a 14.14% loss in its share price over the past year, the average SONY price target of $112.93 per share implies 40.16% upside potential.
