Sony, the renowned Japanese company, reported a significant decline in first-quarter profit, mainly due to underperforming movies and financial divisions.
During the April-June period, operating profit plummeted by 31% to JPY 253 billion ($1.8 billion or approximately Rs. 14,907 crore), in line with expectations.
The movies division experienced a staggering two-thirds decline in profit, with decreased sales of television content and higher marketing expenses resulting from increased film releases in theaters.
Formerly recognized as a consumer electronics giant, Sony has successfully shifted its focus towards entertainment, actively engaging in the development of movies, music, games, and image sensors.
In May, Sony announced its plans to explore a partial spin-off of its financial unit, encompassing life insurance and banking services, with the intent of investing further in their entertainment businesses.
In the present financial year, Sony anticipates sales of 25 million PlayStation 5 consoles, setting a remarkable record for the PlayStation device category, following the alleviation of supply chain difficulties.
The cumulative sales of the PlayStation 5 console have already surpassed 40 million units.
Nintendo revealed last week that it has successfully sold 18.5 million copies of The Legend of Zelda: Tears of the Kingdom since its launch in May, significantly boosting sales of their aging Switch console.
A recent report from gaming market research firm Newzoo projects that the global video games market will regain growth momentum by 2023, primarily driven by strong console sales, including Sony’s PlayStation 5. Newzoo expects industry revenue to rise by 2.6% to $187.7 billion (approximately Rs. 15,54,231 crore) in 2023, attributed to a 7.4% increase in console sales. The research firm’s data indicates that gaming revenue had declined by 5% in 2022.
Last month, Sony’s film division postponed several major releases due to ongoing writers’ and actors’ strikes in Hollywood. Notably, Spider-Man: Beyond the Spider-Verse missed its originally planned release date of March 29, 2024. Additionally, the release of the Spider-Man spinoff Kraven the Hunter, initially scheduled for October 6, has been delayed by nearly a year to August 2024.
© Thomson Reuters 2023
Denial of responsibility! TechCodex is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
