Sony Raises Outlook on Strong PlayStation 5 Momentum

tech.hindustantimes.com:

Sony Group Corp. lifted its full-year profit outlook after record PlayStation 5 console sales helped earnings beat estimates.

The Tokyo-based group raised its PS5 sales forecast to 19 million units for the fiscal year ending March, after selling 7.1 million units over the holiday quarter. Momentum for building out the PS5 ecosystem is growing, Chief Financial Officer Hiroki Totoki said on a call after the earnings Thursday, waving off concerns about a demand lull for the two-year-old console.

Sony also hiked its operating profit forecast to ¥1.18 trillion ($9.2 billion) from ¥1.16 trillion. The key games division, aided by the tailwind of favorable exchange rates, nudged expectations higher. Sony said it now sees slightly lower revenue for the year than previously.

“Given the current climate where demand is deteriorating around the world, it's amazing that Sony's earnings are in line with expectations,“ said Morningstar Investment Service analyst Kazunori Ito. “How long Sony can keep up this momentum depends on how much hardware they can deliver. If they can continue this virtuous software-hardware cycle, which was not possible until last year, this could be a turning point.”

The company, which supplies camera sensors used in Apple Inc.'s iPhones, said operating profit was ¥429 billion in October-December, above the average analyst expectation of ¥369 billion. Sales were ¥3.4 trillion.

Totoki, the veteran CFO who has led Sony's earnings briefings for years, will oversee its global operations, taking up the positions of president and chief operating officer from April 1, the company said earlier.

“I will focus on strengthening our existing businesses and carry out the company's medium-term plan,” the 58-year-old Totoki said.