Sony raised its full-year earnings prediction on Wednesday, citing a solid quarterly performance, despite the game industry’s global boom slowing.
The Japanese entertainment and consumer electronics behemoth now expects a net profit of 700 billion yen ($6.4 billion) for the fiscal year ending March 2022, up from 660 billion yen previously forecast.
In the first quarter, the company claimed strong profitability in its music and electronic products divisions offset a drop in operating profit in the gaming area.
Net profit increased 9.4% year on year to 211.8 billion yen in the three months ending in June. After a 15.0 percent increase in first-quarter sales to 2.26 trillion yen, Sony kept its year sales projection at 9.7 trillion yen.
Despite the fact that Covid-19 had a significant impact on numerous industries, the gaming industry was one of the few to prosper, with demand skyrocketing as consumers sought distractions during lengthy times at home.
Sony recorded its highest-ever yearly net profit in the previous fiscal year, more than doubling to 1.17 trillion yen on record sales of 8.99 trillion yen.
“Sony had a solid year last year as lockdown demand drove software sales,” said Hideki Yasuda, a Tokyo-based analyst at Ace Research Institute.
Despite the development of the Delta variety, Yasuda told AFP, “demand is dramatically falling this year,” as immunizations enable life return to normalcy.