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Can Sony Stock Continue to Rise in 2017?

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Sony stock rose 7.1% last week

Japan-based (EWJ) Sony (SNE) stock rose 7.1% in the week ended January 13, 2017. The 2016 holiday season drove PlayStation 4 sales, as Sony sold over 6.2 million units worldwide and outsold the Xbox One (MSFT).

Since the launch of the PlayStation 4, Sony has sold over 53.4 million consoles worldwide. The firm also expects the figure to touch 60 million units by the end of the current fiscal year ending in March 2017.

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Sony shut down its Guerilla Cambridge studio

During the week ended January 13, 2017, Sony announced that it would close its Guerilla Cambridge video games studio. The firm reportedly made this decision to focus on allocating resources on more viable and valuable projects. Sony clarified that it will reallocate the employees at the studio to other projects.

How did Sony perform in fiscal 2Q16?

Sony reported fiscal 2Q16 sales and operating revenues of ~1.7 trillion yen, a fall of 10.8% compared to sales and operating revenues of ~1.9 trillion yen in fiscal 2Q15. Sales and operating revenues from its Mobile Communications, Game & Network Services, Imaging Products & Solutions, Home Entertainment & Sound, Semiconductors, and Components segments fell 39.6%, 11.3%, 25.2%, 18.7%, 5.0%, and 23.7%, respectively.

Plus, sales and operating revenues from its Pictures, Music, and Financial Services segments rose 4.6%, 8.0%, and 23.6%, respectively, in fiscal 2Q16 compared to fiscal 2Q15.

Sony’s (SNE) net income and EPS (earnings per share) fell to 4.8 billion yen and 3.76 yen, respectively, in fiscal 2Q16 compared to 33.6 billion yen and 26.10 yen, respectively, in fiscal 2Q15.

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