Prime Highlights
- Sony raised its full-year operating profit forecast by 8 per cent to 1.72 trillion yen, driven by gaming strength and favourable exchange rates.
- Sony confirmed it has secured enough memory chip supply to meet its projected sales volume for the current financial year.
Key Facts
- Sony is a Japanese conglomerate known as a leading manufacturer of gaming consoles, cameras and image sensors.
- Sony sold 1.6 million PlayStation 5 consoles in the first quarter, about a third fewer than the same period last year.
Background
Sony has raised its full-year earnings forecast, driven by strong performance in its gaming division, after the Japanese conglomerate posted a better-than-expected 40 per cent jump in first-quarter profit.
The company has earned praise for its shift towards entertainment, though markets remain cautious about the impact of artificial intelligence and rising memory chip costs, which have pressured other technology firms, including major smartphone makers.
Sony confirmed it has secured sufficient memory chip supply for the current financial year. The company stated it had obtained the quantity of memory needed to meet its projected sales volume, adding that its hardware profitability plan for the year remained unchanged from the previous year.
The PlayStation maker raised its group operating profit forecast for the year ending March by 8 per cent to 1.72 trillion yen, citing US tariff refunds, favourable exchange rates and cost control measures supporting its gaming unit. Sony’s shares pared earlier losses to trade flat in Tokyo following the announcement.
Sony is expected to benefit significantly from the upcoming launch of a major new gaming title later this year, as a rival console maker scales back its hardware business. The company sold 1.6 million PlayStation 5 consoles in the first quarter, around a third fewer than the same period last year.
In the April-to-June quarter, group operating profit rose 40 per cent to 476.5 billion yen, supported by strength in gaming and image sensors. A camera lens manufacturer also disclosed this week that it had received an acquisition proposal from Sony and had set up a committee to review the offer.
