Sony raised its annual profit forecast on Wednesday after the company announced an unexpected increase in its second-quarter profit as its gaming business continues to capture “nested” demand driven by COVID-19 lock-in measures.
The entertainment and electronics company said in a statement that its profit from July to September reached 317.76 billion yen (approximately 22,500 crore), compared with 278.96 billion yen (approximately 197 crore) in the same period last year. An increase of 13.9%.
The result is compared with the average of 197.55 billion yen (approximately Rs 140 billion) compiled by Refinitiv, which was estimated by 11 analysts. Sony has increased its annual profit forecast from the previous 620 billion yen (approximately 43.9 billion rupees) to 700 billion yen (approximately 4,960 billion rupees). The average forecast of 24 analysts was 672.33 billion yen (approximately 47,600 crore).
The company currently forecasts that the annual profit of its gaming division will increase from the previously estimated 240 billion yen (approximately 170 billion rupees) to 300 billion yen (approximately 212 billion rupees).
Although the life cycle of the PlayStation 4 console is coming to an end, during the lock-in period, consumers have turned to game software downloads and online subscription services to increase profits.
Such high online revenue may help Sony’s gaming business remain profitable this year, exceeding the massive marketing and production costs that will be brought by the release of the PlayStation 5 (PS5) console next month.
In an interview, Jim Ryan, CEO of Sony Interactive Entertainment, said that Sony pre-sold as many PS5 consoles in the United States in the first 12 hours of its predecessor PlayStation 4 device as it did in the first 12 weeks.
Ryan told Reuters: “The demand expressed by the booking level is very, very large.”
© Thomson Reuters 2020
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