TOKYO, Japan (AFP) – Sony raised its full-year net profit prediction, encouraged by the popularity of its latest Spider-Man film and good earnings in the gaming industry despite a global chip shortage.
The Japanese computer behemoth has already posted a record net profit in 2020-21, thanks to a pandemic surge in gaming income.
Despite the fact that large demand for gaming is dwindling as virus restrictions are relaxed in many countries, Sony said it is still seeing good success across industries including as movies, gaming, and electronics.
The firm now expects a net profit of 860 billion yen ($7.4 billion) for the fiscal year ending March 2022, up from 730 billion yen in the previous quarter.
“Operating income is likely to be higher than the October forecast due to anticipated gains in operating income in the image, gaming and network services, electronic products and solutions, and music sectors,” Sony said in a statement.
According to the company, a favourable foreign exchange rate and a projected decrease in operational losses in other areas, particularly its corporate division, would help its bottom line.
Sony anticipates greater film sales, “mainly owing to a projected rise in sales… arising from the outstanding theatrical performances of Spider-Man: No Way Home and Venom: Let There Be Carnage,” according to the company.
According to industry analyst Exhibitor Relations, “No Way Home,” which was released in December in the United States, became the first billion-dollar-grossing picture of the epidemic age during the Christmas weekend.
Sony anticipates the worldwide chip shortage to have an impact on sales of its PlayStation 5 system this fiscal year, but stated operating income in its gaming sector will still be greater than originally predicted “thanks to an expected drop in selling, general, and administrative expenditures.”
The firm has had difficulties in releasing the PS5, which is frequently sold out and remains difficult for users to get, owing in part to worldwide supply chain instability.
The estimate comes as Sony finds itself in a war for gaming domination following Microsoft’s $69 billion acquisition of “Call of Duty” developer Activision Blizzard.
This week, Sony responded with its own purchase announcement, announcing a $3.6 billion agreement to buy US video game firm Bungie, developer of successes such as “Halo” and “Destiny.”
Sony reported a net profit of 771 billion yen for the nine months ending December 2021, a 20% decrease year on year, with revenues increasing 13% to 7.66 trillion yen.