Sony’s PlayStation 5.
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Sony raised sales guidance for the full year on Friday and posted operating profit that smashed analyst expectations after a strong quarter for its gaming business.
Here’s how the company did in the September quarter, versus LSEG consensus estimates:
- Revenue: 2.97 trillion Japanese yen ($19.4 billion), versus 3.03 trillion yen expected. That was up 9% and slightly below analyst expectations.
- Operating profit:Â 455.1 billion yen, versus 336.07 billion yen expected. That’s up 73% year over year and beats expectations.
The Japanese tech giant revised its fiscal 2025 revenue target up slightly to 12.7 trillion yen. It previously targeted 12.6 billion yen in sales. Sony also expects full-year operating profit of 1.3 trillion yen, in line with its previous forecast.
That came as Sony saw strength in its game and network services division, which houses its popular PlayStation home console brand. Game and network services revenue at the company came in at 1 trillion yen, up 12% year over year.
Sony’s gaming division has held up well thanks to a shift to digital game purchases and the PlayStation Plus subscription service. However, hardware shipments have proven lackluster amid a weak console market beset by a lack of hyped-up triple-A games.
Analysts expect things to improve next year for the gaming sector, though — not least thanks to the anticipated launch of a next-generation Nintendo Switch model and the release of Grand Theft Auto VI.
Sony said it sold 3.8 million PlayStation 5 units in the September quarter, down 22% year over year. Still, the firm saw a 28% jump in game software sales for the three-month period, to 612.3 billion yen. Astro Bot, a new platformer title released for PS5 in September, sold 1.5 million units in its first 58 days.
On Thursday, Sony launched its upgraded PlayStation 5 Pro console, touting a better graphics card allowing for faster gameplay rendering and new artificial intelligence capabilities to upscale graphics with sharper image clarity.
Analysts hope that the launch will boost interest in the PS5 with a souped-up piece of hardware ready for release of GTA VI, one of this decade’s most hotly anticipated games.
Correction: This story has been updated to reflect that operating income jumped 73% year over year in the September quarter. Sony raised sales guidance for the full year on Friday. An earlier version misstated the day. Sony’s operating profit was 455.1 billion yen. An earlier version misstated the figure. Game and network services revenue rose 12% year over year. An earlier version misstated the percentage.