Sony Group has revised its annual profit forecast, citing strong performance in its video game division. The company has also increased its sales target for the PlayStation 5 game console by one million units, bringing the new target to 19 million units for the fiscal year ending in March.
In addition to these updates, Sony announced that its chief financial officer, Hiroki Totoki, will take on the role of president and chief operating officer starting April 1 while maintaining his current position. Kenichiro Yoshida, the current president, will continue to serve as chairman and chief executive officer.
During a news conference, Totoki expressed his commitment to growth, stating that businesses often face decline when growth stagnates. He highlighted the importance of realizing growth and creating a positive cycle where Sony’s products are preferred by customers, and employees are motivated.
Sony now anticipates operating profit for the fiscal year ending on March 31 to reach 1.18 trillion yen, a 1.7 percent increase from its previous forecast of 1.16 trillion yen. While this falls slightly short of analysts’ average estimate of 1.19 trillion yen, it is close to the record profit of 1.2 trillion yen posted in the previous year.
The company reported the sale of 7.1 million PlayStation 5 consoles in the October-December quarter, a significant increase from the 3.9 million units sold in the same period a year ago. Totoki credited this growth to the various measures taken by Sony in both hardware and software development, expressing confidence in re-accelerating growth in the gaming sector.
Sony faced challenges in meeting demand for the PlayStation 5 last year due to supply chain disruptions. Totoki acknowledged that supply chain risks have not yet been fully resolved but assured that console production has been ramped up in the October-December quarter to meet current demand.
In terms of financial performance, Sony’s operating profit for October-December experienced a 7.8 percent decrease compared to the previous year, primarily due to underperformance in its film division. Last year’s blockbuster movie “Spider-Man: No Way Home” had bolstered profits during the same period.
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