Sony Profit Jumps As Games Offset Weak Movie Performance

Sony has reported that its operating profit rose 73% in the July-September quarter, with strong sales in its game and network business helping to offset weakness in movies, Mariko Katsumura and Sam Nussey reported for Reuters.

Sony continues to see a smooth shift (among consumers) to PS5 from PS4. I Photo: PlayStation Facebook

Sony, whose businesses also include music and chips, maintained its profit forecast of 1.31 trillion yen ($8.51 billion) for the year ending in March, largely in line with the 1.34 trillion yen estimate of 24 analysts polled by LSEG.

Sony's second-quarter operating profit surged to 455.1 billion yen from 263 billion yen a year earlier, bolstered by solid sales of image sensors.

In addition to a rise in third-party software sales, Sony President Hiroki Totoki highlighted improving profitability in its game hardware business.

"We continue seeing a smooth shift (among consumers) to PS5 from PS4, which is leading to higher software sales as well," Totoki said in an earnings briefing.

Sony generates more than a third of its revenue from the game and network service segment, where profit nearly tripled to 138.8 billion yen during the quarter. Sony released an upgraded version of its flagship console with enhanced graphics on Nov. 7.