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However, this announcement belies a bigger issue according to financial analystsas reported by CNBC.

Goyal said that Sony’s “forecast cut for PS5 […] is not what is disappointing.”

PS5 with PlayStation Studios in the background

Rather, it comes down to a fall in the company’s gaming operating margin.

Per CNBC, Sony’s operating margin in the gaming industry came into just under 6 percent last quarter.

This is markedly less than the 9 percent we saw this time in 2022.

The analyst called this reduction in margins an “extremely disappointing” trend.