Spider-Man: No Way Home Success, Gaming Boom Help Sony Lift Annual Profit Outlook

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Sony upgraded its full-year net profit forecast on Wednesday, buoyed by the success of its latest Spider-Man movie and strong results in the gaming sector despite the global chip shortage.

It comes as the Japanese tech giant battles for gaming supremacy with US rival Microsoft after its blockbuster acquisition of Activision.

Sony already logged a record net profit in 2020-21, with a pandemic boom in gaming swelling its profits.

Although the huge demand for gaming is tapering now, Sony said it is continuing to see strong performances by divisions including film, games and electronics.

The conglomerate now projects a net profit of JPY 860 billion (roughly Rs. 56,247 crore) for the fiscal year to March 2022, having already hiked its full-year estimate to JPY 730 billion (roughly Rs. 47,745 crore) in the previous quarter.

A favourable foreign exchange rate and expected decrease in operating losses in sectors including its corporate division will also boost its bottom line, it said.

The group cheered strong results in its film division including for Spider-Man: No Way Home, which was released in December and could soon overtake Avatar as North America's third-highest grossing film.

"This is the biggest hit that Sony Pictures Entertainment has ever seen," Chief Financial Officer Hiroki Totoki told reporters.

The firm's music segment also scored a winner with Adele's latest album 30 and stronger-than-expected licence revenue in its popular anime business.

Net profit in the nine months to December 2021 was JPY 771 billion (roughly Rs. 50,431 crore), down 20 percent year-on-year, Sony said, with sales in the same period up 13 percent to JPY 7.66 trillion (roughly Rs. 5,01,046 crore).

'Supply constraints Sony expects the global