Sony Corp raises revenue outlook on strong music sales and unexpected growth in video games in China Black Myth: Wukong to its PlayStation section.
The Tokyo-based company said it now expects net income of 12.71 trillion yen ($83.2 billion or 7,020.23 billion rupees) in the year to March, slightly higher than its previous forecast. However, the company stuck to its operating profit forecast, citing slowing demand for image sensors in North America.
Sony, which not only produces entertainment content but also supplies smartphone components to companies including Apple Inc and Xiaomi Corp, reported a 73% rise in operating profit in the September quarter, beating expectations.
Friday’s earnings report highlighted the impact of several hit games on Sony’s PlayStation business unit, which is now four years old on the latest generation of hardware. Sales of external games and internal games, e.g. astronomy robot The company said earnings increased and margins on hardware sales improved. Despite the failure of big-budget live service games and more harmony.
The company sold 3.8 million PlayStation 5 units in the quarter, leading to an 11% increase in profit forecasts for its games and online services division.
“The gaming sector is making up for declining demand for image sensors in North America, while the music business has room to grow,” said Bloomberg Intelligence’s Masahiro Wakasugi.
The entertainment group this week launched the PlayStation 5 Pro, a high-priced, high-performance version of the company’s flagship console aimed at preventing a shift to rival platforms during the year-end shopping season. Next year, Sony awaits hits including Capcom Co. monster hunter wilds and Rockstar Games Inc. Grand Theft Auto VI.
As one of the world’s largest music companies, Sony has also benefited from the popularity of streaming services such as Spotify. Spotify Technology SA’s U.S.-listed shares have more than doubled this year on optimism about continued growth. Sony Music Group also owns some smartphone gaming and anime publishing businesses, both of which are soaring in popularity outside Japan.
Executives said the company’s film business has yet to fully recover from last year’s strike by actors and writers in Hollywood, while falling advertising revenue in India is also weighing on the business.
© 2024 Bloomberg
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