Sony Group adjusts profit projections
Sony is making more money than expected, having just adjusted its profit projection from ¥660 billion to ¥700 billion for the financial year ending in March 2022.
Both the music and consumer electronic divisions have been doing brisk business this quarter, offsetting the declining revenues from the PlayStation business due to the launch of the PlayStation 5 and its manufacturing costs.
- Sony says it has enough semiconductor chips to reach its target of 22 million units by the end of the current fiscal year
- PlayStation Plus subscribers were up by 1.3m year-on-year, but dropped by a million in Q1 2021, going from 47.6 to 46.3 million
- Sony isn't worried about the decline in monthly active users and PlayStation Plus subscribers
- Industry Analyst Daniel Ahmad backs this claim, suggesting that the pandemic makes the dip more "pronounced" and that it's normal to see a decline in Q1
Fewer games: As COVID-19 lockdown measures are gradually eased, videogames sales are dropping from its recent highs. Sony reported its largest annual net profit ever in 2020.
Great expectations: Net profits rose by 9.4% to ¥211.8 billion from April to June, with first-quarter sales up 15% to ¥2.26 trillion. Sony Group's annual sales forecast remains at ¥9.7 trillion for now.