Sony Corp projected profit on strong demand for its game products, but offered a rough forecast for the fiscal year due to uncertainty from the coronovirus epidemic.
The Tokyo-based company said operating profit in the quarter ended June was 228 billion yen ($ 2.15 billion), compared to an average analyst estimate of 137 billion yen. The company estimates operating profit for the year ending in March of 620 billion yen, compared to estimates of 654 billion yen. Sony also said that it would buy back 1.64% of the 100 billion yen shares.
The Japanese tech giant is preparing to launch its latest generation of PlayStation gaming consoles this holiday season, with current hardware sales down. Still, Sony anticipates strong sales for PlayStation 5, recently asking suppliers The double production, and the final quarter, made it clear that coronovirus is increasing demand for the game as many people are stuck in the house.
Hideki Yasuda, an analyst at the Ace Research Institute, said, “The result of the PlayStation unit, which showed great software sales during the recent year-end holiday season, is clearly a big positive surprise.” “People’s hesitation will likely go out for months, a strong tailwind for Sony’s sports unit that will run at least this financial year.”
Read more: Sony Boosting PlayStation 5 Output to Meet Virus Demand Surge
In a call with investors, Sony’s top executives made it clear that the environment was challenging and would have to keep pace with the collapse from the Kovid-19 outbreak.
Hiroki Totoki, the company’s chief financial officer, said, “This financial year is important not to overcome the Kovid-19 impact, but for how we change our strategy to better fit our strategy.” is important. “Survivors will not be the strongest, but those who are willing to make changes.”
An official from the PlayStation unit, who asked not to be identified because the plan is not yet public, said that Sony’s next announcement about the PlayStation 5 is tentatively scheduled for this month. The company intends to release two versions of the console, one with Blu-ray. Disk Drive And one without, although it is still there to disclose pricing for the model.
Macquarie Capital analyst Damian Thong said, “I think Sony will quickly eliminate the initial several million units adopting the PlayStation.” “With backward compatibility, their existing game library will work with the new console, so the new machine will be immediately usable.”
Thong said he expected the standard PlayStation 5 unit to cost $ 500 more Disk Drive-Specific version will be sold for $ 400. In total, he said, Sony will sell more than 6 million units of the PlayStation 5 console by the end of March next year.
Games software was a highlight for Sony in June, with the supporting part Naughty Dog of the Last Part II released in June. The game sold over 4 million in its first three days, making it the fastest selling first party, becoming the fastest selling 4th Ghost on PlayStation, Ghost of Tsushima, released on July 17, with the first three Has sold 2.4 million copies in days. The company said.
The recent games business underscores its commitment to Sony Invested $ 250 million in Epic Games Inc., owner of Fortnite and the unrealistic game-development engine. The latter is set to play an important role in the creation of the upcoming PlayStation 5 title.
Read more: Sony Unreal Engine Manufacturer Invests $ 250 Million in Epic Games
Sony forecasts lower results for its image sensor business, which is traditionally the fastest growing division Apple Inc. Supplies camera technology for the choice of. It is estimated that the operating profit of the unit for the current fiscal year would be around 130 billion yen, compared with 235.6 billion yen. A year ago, due to weak demand related to coronovirus.
Todoki said, “The global economic downturn stemming from the Kovid-19 is hurting demand for high-end smartphones and thus our image sensor product lineup has been optimized for these customers.” “For a long time, we still believe that demand for high-end smartphones and image sensors will return, but for this year and next year we will need to align our strategy to more mid-low-end smartphones. “
(Updates with CFO comments from sixth paragraph)