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Sony Foresees Lower Profits Despite Record PS5 Sales

Sony Group Corp announced on Friday that PlayStation 5 sales are projected to increase by six million units during the current business year. However, the company predicts a decline in Profit due to weaker financial services sales, which will offset the gains from gaming, music, and movies.

Sony building
Sony building

Operating Profit is Predicted to Fall 3.2% to 1.17 Trillion Yen

According to Refinitiv data, Sony expects its operating Profit for the year ending on March 31 to fall 3.2% to 1.17 trillion yen ($8.65 billion), which is lower than analysts' average estimate of 1.275 trillion yen.

PS5 Supply Chain Issues Resolved Amid COVID-19 Pandemic

The successful performance of Sony's gaming unit brings relief to the entertainment and electronics conglomerate. The company had previously struggled to produce enough PlayStation 5 consoles due to semiconductor supply chain disruptions during the COVID-19 pandemic. Sony Group President Hiroki Totoki stated, "We can now deliver PlayStation 5 to almost anywhere in the world without keeping our customers waiting."

Record 25 Million PS5 Consoles Expected to Sell This Year

Competing with Xbox maker Microsoft Corp and Switch provider Nintendo Co Ltd, Sony anticipates selling a record 25 million PlayStation 5 consoles this business year. This is an increase from the 19.1 million sold during the previous 12 months, more than double the number sold the year before.

Gaming and Network Unit Profit Projected to Rise by 8%

For the current business year, Sony forecasts an 8% increase in Profit for its gaming and network unit, reaching 270 billion yen. Profits for the company's music and pictures divisions are expected to be slightly higher, while earnings from financial services are predicted to fall by a fifth. Sony also anticipates a 5.8% dip in image sensor operating Profit, totaling 200 billion yen.

Q4 Operating Profit Down 7.3%, Full Year Profit Reaches Record High

Sony reported that overall operating Profit for the quarter ending on March 31 fell 7.3% to 128.5 billion yen, but the full-year Profit reached a record high of 1.21 trillion yen.