Sony posts profit on pandemic-driven demand for PS5, movies

Sony raised its earnings outlook Wednesday because the pandemic spurred demand for its PlayStation 5 gaming consoles, music and flicks.

The Japanese electronics big has gotten a lift from shoppers who’ve spent extra time hunkered down at dwelling throughout the pandemic. For the first-quarter ended June 20, Sony mentioned revenue surged 26 p.c to $2.57 billion, besting analysts’ estimates of $1.90 billion. Income rose 15 p.c to $20.62 billion.

The corporate raised its revenue forecast for the 12 months by means of March 2022 to $8.94 billion from $8.49 billion because the agency continued to see booming demand for PS5 gaming consoles.

Final week, Sony mentioned that the gaming console offered greater than 10 million items because it launched final November, outstripping gross sales of its predecessor PS4, even because the the agency grapples with a world chip scarcity.

PlayStation 5 gaming system displayed beneath PlayStation signage
Gross sales of PlayStation 5 have outstripped these of its predecessor, PS4.
SOPA Photos/LightRocket by way of Getty Photos

Sony mentioned it has hung out streamlining its client electronics enterprise, which incorporates ramping up PlayStation 5 manufacturing, whereas additionally beefing up its leisure division.

In December, Sony purchased AT&T’s animé-focused streaming service Crunchyroll for $1 billion, and months later, in April Sony inked a pair of profitable, multi-year licensing offers for its movie output with each Netflix and Disney.

The transfer is a part of an even bigger push at Sony to broaden its leisure and gaming enterprise by means of acquisitions. The Tokyo-based agency mentioned in Could that it might spend over $18 billion within the subsequent three years on strategic investments, and that would come with a spotlight to broaden subscribers for its gaming and leisure companies.

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