Sony expects strong fiscal year earnings thanks to strong PlayStation results

Sony’s revenue for the first quarter of this fiscal year increased 33% year over year to 3 trillion yen ($20.7 billion). However, the company’s operating profit fell 31% to 253 billion yen, writes CNBC.

Sony said its operating profit suffered from a significant drop in profits from its financial services and film and photography businesses. Sony’s financial services profit fell 61%, and the film division lost 68% of that amount.

Nevertheless, Sony raised its full-year revenue forecast by 6% to 12.2 trillion yen. This is due to the strong performance of the PlayStation gaming division. Sony improved its forecast for sales of games and network services by 7% to 4.2 trillion yen. The profit forecast remains unchanged at 270 billion yen.

Sony expects its PlayStation game business to have a very successful year. In April-June, the company sold 3.3 million PlayStation 5 units, up 38% year over year.

It was previously reported that Sony Group will increase research and development spending in the game segment, to improve technologies for live communication games and the emerging field of augmented reality, which combines the physical and digital worlds.

In the fiscal year ending March 2024, the company will invest 300 billion yen (approximately $2.13 billion) in research and development for its gaming segment.