Sony Forecasts 6 Million More PS5 Sales This Year, But Expects 3.2% Profit Dip Due to Weak Financial Services Sales:
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Sony Expects PS5 Sales to Jump by 6 Million Units, Despite Forecasted 3.2% Dip in Profit due to Weak Financial Services Sales( Photo by Charles Sims on Unsplash)
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HIGHLIGHTS:
Sony expects PlayStation 5 sales to increase by 6 million units this business year. Despite this, the company forecasts a 3.2% drop in operating profit due to weaker financial services sales, offsetting gains from gaming, music, and movies. Sony's gaming unit is expected to see an 8% rise in profit, with the company predicting record PS5 sales of 25 million units.
Sony Group has announced that its PlayStation 5 (PS5) sales will jump by six million units in the business year, although the company expects its profits to slip from a record high due to weaker financial services sales, which are offsetting gains from gaming, music, and movies.
The Japanese entertainment and electronics conglomerate expects operating profit to fall 3.2 percent to JPY 1.17 trillion ($8.65 billion) by March 31, 2022, which is lower than analysts' average estimate of a JPY 1.275 trillion ($11.7 billion) profit, according to Refinitiv data.
The improved performance of Sony's gaming unit, however, will come as a relief to the company as it struggled to produce enough PS5 game consoles to meet the demand during the COVID-19 pandemic due to semiconductor supply chain disruptions.
PS5 Sales Set to Jump:
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| Technology share chart(Photo by Markus Winkler on Unsplash) |
Sony, which competes with Xbox maker Microsoft and Switch provider Nintendo, expects to sell a record 25 million PlayStation 5 consoles this business year, up from 19.1 million in the previous 12 months and more than double the number sold the year before that.
Sony's PS5 is a highly sought-after product that has struggled to meet demand due to supply chain issues, but the company has since managed to address these challenges and can now deliver the console almost anywhere in the world without keeping customers waiting, according to Sony Group President
Hiroki Totoki.
Expectation for Gaming and Network Unit:
For the business year, Sony forecasts an 8 percent rise in profit at its gaming and network unit to JPY 270 billion ($2.5 billion). The company also expects earnings at its music and pictures divisions to be slightly higher, with profits from financial services falling by a fifth.
Sony also predicted that image sensor sales would dip by 5.8 percent to JPY 200 billion ($1.8 billion). The firm said overall operating profit for the three months that ended March 31 fell 7.3 percent to JPY 128.5 billion ($1.2 billion), with full-year profit nudging up to a record JPY 1.21 trillion ($11.1 billion).
Outlook for Sony's Future
The improved performance of Sony's gaming unit is a positive sign for the company, given the intense competition in the console space. The PS5's success also bodes well for Sony's future, as the company has been investing heavily in its gaming and entertainment businesses as part of its long-term growth strategy.
As the world recovers from the pandemic and people continue to spend more time at home, demand for gaming and entertainment is likely to remain high. Therefore, Sony's focus on these sectors is expected to yield positive results and keep the company competitive in the years to come.
In conclusion, while Sony may see a slip in profits due to weaker financial services sales, the company's PS5 sales are set to soar, and the outlook for its gaming and entertainment businesses is positive. The company's investments in these sectors should yield positive results, keeping it competitive in the console space and beyond.
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