Sony posts record April-June profit, raises FY 2018 outlook


Gaming sales, which account for about a quarter of Sony's revenue, rose 36 per cent to 472 billion yen.

Sony on Tuesday revised upward its full-year profit and sales forecast, reporting first quarter profits almost tripled from a year earlier, as it extends a roaring recovery under its new CEO.

The result is the first since Sony pledged to maintain high profit levels after beating its 1998 annual earnings record past year.

Even though PlayStation head John Kodera said a few months back that he thinks that the PlayStation 4 has run its course for making profit, the company sold 3.2 million devices from April to June this year, which is only 100,000 less than it sold last year during the same period. That gain came from the sale of Sony's camera module unit and the receipt of insurance payouts for natural disaster damage.

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The upward revisions confirm a smooth transfer at Sony following its return to health after huge losses in recent years. That boosted royalties received by Sony, sending operating profit up 28% from a year ago to ¥32.1-billion. Rather than doubling-down on engagement strategies like Microsoft, Sony is putting strong effort into robust first-party games like God of War, Insomniac's Spider-Man, Death Stranding and The Last of Us II in an effort to both sell consoles and software.

These two games will be available at no additional cost to active PS Plus subscribers, as the titles can be downloaded for free on PlayStation 4 consoles starting on Tuesday, August 7, 2018. The division includes sensors, which Sony expects to grow in the mid-to-long term as applications expand to vehicles, factory automation, surveillance and depth sensing.

Sony improved the full-year outlook for most of its divisions, and especially gaming, while only mobile communications suffered a further cut in forecasts. Net income also topped their prediction at ¥226.5-billion; the company raised its fiscal full-year forecast for net income by ¥20-billion to ¥500-billion. That compared with the 754.66 billion yen average of 24 analyst estimates.

But he also said the outlook is uncertain.