Sony plunged $10 billion after its PS5 sales cut. But a bigger issue is its near decade low games margin

Around $10 billion of value was wiped off Sony’s stock last week, after the Japanese tech giant cut its sales forecast for its flagship PlayStation 5 console for the fiscal year.

Analysts, who already thought Sony’s PS5 target was too lofty, told CNBC a bigger issue for the company are its declining margins in its key gaming business.

Sony…