Technology
Friday, November 8th, 2024 4:06 pm EDT
Key Points
- Sony raised its full-year sales forecast and reported a strong 73% year-over-year increase in operating profit for the September quarter, driven by strong performance in its gaming division.
- The gaming segment, including the PlayStation brand, saw a 12% increase in revenue to 1 trillion yen, with a notable 28% jump in game software sales, despite a 22% decline in PlayStation 5 hardware sales.
- Sony recently launched the PlayStation 5 Pro, an upgraded console with advanced AI and enhanced graphics capabilities, which analysts believe could boost PS5 interest, especially with upcoming major releases like Grand Theft Auto VI.
Sony reported strong performance in its gaming division, leading to a higher full-year sales forecast and an impressive operating profit that exceeded expectations. For the September quarter, Sony’s revenue reached 2.97 trillion yen ($19.4 billion), a 9% increase year-over-year but slightly below analyst forecasts of 3.03 trillion yen. However, the company’s operating profit surged by 73% to 455.1 billion yen, far surpassing the anticipated 336.07 billion yen. Sony slightly raised its fiscal 2025 revenue forecast to 12.7 trillion yen and maintained its full-year operating profit target at 1.3 trillion yen.
The gaming and network services segment, which includes Sony’s PlayStation brand, was a key driver of this growth, bringing in 1 trillion yen in revenue—a 12% year-over-year increase. Despite the broader console market facing challenges due to low hardware demand and a shortage of high-profile game releases, Sony’s shift to digital game sales and its PlayStation Plus subscription service have helped offset these headwinds. Game software sales rose 28% for the quarter to 612.3 billion yen, with notable titles like Astro Bot on PS5 selling 1.5 million units within 58 days of its release. Sony sold 3.8 million PS5 units during the quarter, down 22% year-over-year, but analysts expect demand to pick up next year, especially with the anticipated launch of Nintendo’s next-generation Switch and the highly awaited Grand Theft Auto VI.
In response to this demand, Sony recently launched the PlayStation 5 Pro, an upgraded version with advanced AI capabilities and enhanced graphics for faster gameplay rendering. Analysts are optimistic that the PS5 Pro could renew interest in the PlayStation line, particularly with upcoming major releases like GTA VI poised to attract a broader gaming audience.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/11/08/sony-reports-73percent-jump-in-operating-profit-beating-expectations.html
