Published: Fri, August 03, 2018
Electronics | By Shannon Stone

Sony upgrades full-year forecast, logs brisk quarterly profit

Sony upgrades full-year forecast, logs brisk quarterly profit

A little under five years ago gaming giant SONY (TYO:6758) (NYSE:SNE) released its blockbuster console the Sony PS4.

The Japanese electronics and entertainment giant said group net profit for the quarter to June 30 almost tripled from a year earlier to a record 226.45 billion yen ($2 billion), helped by a special profit from the sale of shares in Swedish streaming giant Spotify Technology S.A. The result compared with the 145.23 billion yen average of eight analyst estimates compiled by Thomson Reuters I/B/E/S. These two games will be available at no additional cost to active PS Plus subscribers, as the titles can be downloaded for free on PlayStation 4 consoles starting on Tuesday, August 7, 2018.

Sony has confirmed in its quarterly earnings report that PlayStation 4 sales have managed to surpass 82.2 million units, beating out the lifetime 80 million units the PlayStation 3 sold during its time on the market.

To keep the console even further afloat in 2018, it has highly anticipated games coming out that should boost Sony's gaming arm even more. They are up 36%, from 348.1 billion yen for this time previous year, to 472.1 billion yen for Q1 FY2018. In the first quarter, the gaming division posted sales up 36 percent to JPY 472 billion, and operating profit jumped to JPY 83.5 billion from JPY 17.7 billion, driven by strong sales of Playstation software and network sales.

The electronics maker sees sensors as a pillar of growth in the medium and long term, as applications are likely to expand to depth sensing, surveillance, factory automation and automobiles.

Sony maintained its profit forecast for the year ending March at 670 billion yen.

It said sales were up 9.1 percent to ¥168.16 billion, and it was expecting strong demand for the Switch console to continue into the second half of the year. The average of 24 analyst estimates is 755 billion yen.

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