The co-CEOs of PlayStation, a home video game console by Sony Computer Entertainment, a subsidiary of Sony Group Corp. (NYSE:SONY) have shared their perspectives on the evolving role of artificial intelligence in the gaming industry.
What Happened: In an interview with BBC that was published on Tuesday, Hermen Hulst and Hideaki Nishino addressed concerns of developers about AI’s potential to automate routine tasks, impacting employment.
Hulst reassured that human developers will continue to play a crucial role. “I suspect there will be a dual demand in gaming: one for AI-driven innovative experiences and another for handcrafted, thoughtful content,” he stated, adding that balancing AI and human input is essential.
Since taking the helm in June, Hulst and Nishino have faced hurdles, including the failure of the game Concord and criticism over the PlayStation 5 Pro’s pricing.
However, they remain hopeful about the future, citing the success of Astro Bot and exploring new gaming experiences, such as cloud streaming for handheld devices.
Sony also plans to continue expanding PlayStation’s game IP into film, following the success of "The Last of Us" and "Uncharted." Hulst mentioned a God of War series in development for Amazon Prime as an example.
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Why It Matters: The appointment of Hulst and Nishino as co-CEOs of PlayStation followed the retirement of former PlayStation boss Jim Ryan. Hulst and Nishino report to Hiroki Totoki, who is the chairman of SIE and president, COO, and CFO of Sony Group.
Earlier this month, Sony Group reported a 3% year-on-year increase in consolidated sales for the second quarter of 2024, reaching $19.44 billion, which fell short of the analyst consensus estimate of $19.62 billion.
Price Action: Sony’s stock rose by 2.3% on Tuesday, finishing at $20.47. In pre-market trading, it climbed another 2.74% to reach $21.03. Year-to-date, Sony shares have increased by 9.7%, according to Benzinga Pro.
The three most recent analyst ratings for Sony Group Corp were issued by Oppenheimer, and TD Cowen on Nov. 12 and Oct. 11, respectively. These ratings suggest an average price target of $52, indicating a potential upside of 147.27% for the stock based on the analysts’ assessments.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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