Sony Group has raised its full-year profit guidance, helped by a strong performance from its video games division, and raised its sales target for the PlayStation 5 games console by one million units to 19 million for the year to March.
The electronics and entertainment giant also said its chief financial officer, Hiroki Totoki, will become president and chief operating officer effective April 1 and retain his current role.
Acting President Kenichiro Yoshida remains Chairman and Chief Executive Officer.
“I’m obsessed with growth. All businesses and companies tend to go into a negative spiral when growth falters,” Totoki told a news conference on Thursday.
“By realizing growth, I want to create a virtuous circle where we are chosen by customers and our employees are energized.”
The company now expects operating profit to total 1.18 trillion yen (about Rs. 96.98,900 crore) for the year ended March 31, up 1.7 percent from its earlier forecast of 1.16 trillion yen (approximately Rs. 95,34,500 crore).
That falls short of analysts’ average estimate of 1.19 trillion yen (about Rs.97,80,500) in earnings, according to Refinitiv data, and just short of a record profit of 1.2 trillion yen (about Rs.98,62,100 crore). a year earlier.
Sony said sales of his PlayStation 5 Consoles totaled 7.1 million units in the October-December quarter, which coincides with the critical year-end shopping season, a significant increase from 3.9 million units a year earlier.
“Various steps that we have taken on both the hardware and software side are steadily bearing fruit. I believe we are creating positive momentum to accelerate growth in our gaming operations again,” Totoki said.
Sony, which competes with Xbox Manufacturer Microsoft and switch providers Nintendo in the gaming sector struggled to produce enough PlayStation 5 units last year due to supply chain difficulties.
Totoki said risks related to supply chains have not yet been addressed and the company has ramped up game console production sharply in the October-December quarter so it can safely meet demand in the current quarter.
For October-December, Sony reported a 7.8 percent decline in operating profit as its film division underperformed from a year ago when a blockbuster movie, Spider-Man: No Way Home, boosted its profits.
© Thomson Reuters 2023
