Sony Jumps After Hiking Outlook and PlayStation Expectations

tech.hindustantimes.com:

Sony Group Corp. shares had their biggest surge in seven months after the company said PlayStation 5 production went better than expected in the past quarter and it now aims to surpass its sales target for the fiscal year.

The Tokyo-based conglomerate also bumped its full-year operating profit forecast by 5%, largely on the weakness of the yen. It reported sales of 2.75 trillion yen ($18.6 billion) in the three months ended September, 16% higher than the prior year, after getting a boost from its music streaming division. The company is now gearing up to beat its goal of 18 million PS5 sales this fiscal year and set a target of 23 million units for the next.

Shares were up 7% in Tokyo on Wednesday after slumping more than 30% this year prior to its latest earnings report.

Sony's results proved better than feared, as the company's various businesses are dependent on strong consumer demand, which has dissipated this year with a global economic downturn and potential recession on the horizon. Chief Financial Officer Hiroki Totoki said the games business was feeling the compound effects of cooler consumer appetites and the worldwide reopening after the pandemic, with both factors pushing people away from games and other leisure spending.

Still, the company said it's seeing strong user engagement with newer games on the PlayStation platform and sounded a positive note about the release of its next God of War game, scheduled for next week, as a catalyst for more sales. It assembled 6.5 million PS5s in the past quarter, which was a faster production pace than expected, Totoki said.

“Considering the PlayStation did not see a single big game in the quarter, numbers were surprisingly stable,” said industry analyst Serkan