(Bloomberg) — Sony Group Corp. nudged up its revenue outlook after logging strong music sales and continued momentum for PlayStation games.
Most Read from Bloomberg
The Tokyo-based company said it now expects net revenue of ¥12.71 trillion ($83.2 billion) in the year to March, up slightly from its previous forecast. For the September quarter, Sony’s operating profit came to ¥455.08 billion, up 73% and beating the average of analyst estimates of ¥335.3 billion.
Sony has been working to lower its reliance on the core PlayStation business segment, four years into the latest hardware generation. The game segment beat expectations in both hardware and software sales, however, selling a better-than-expected 3.8 million PlayStation 5 units in the quarter.
Hit titles, such as Sony’s in-house Astro Bot and Game Science Interactive Technology Co.’s Black Myth: Wukong, bolstered earnings, making up for flops such as big-budget live service game Concord.
“Hits like Wukong delivered,” said Bloomberg Intelligence’s Masahiro Wakasugi. “The game segment is making up for a decline in image sensor demand in North America, while there’s room for growth in the music business.”
As one of the world’s biggest music rights holders and publishers, Sony has benefited from the popularity of streaming services like Spotify. Spotify Technology SA’s US-traded shares have more than doubled this year on optimism for sustained growth. Sony’s music group also houses some of its smartphone games and anime publishing, with both seeing a surge in popularity outside Japan.
The entertainment group this week launched PlayStation 5 Pro, a high-priced, high-performance version of the company’s flagship game console aimed at preventing defections to rival platforms during the year-end shopping season. Next year, Sony plans to release blockbuster titles including Capcom Co.’s Monster Hunter Wilds and Rockstar Games Inc.’s Grand Theft Auto VI. Still, the company’s profitability from consoles is fading, as more of its portfolio becomes available to play on rival game machines, PCs and smartphones.
(Updates with analyst commentary)
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
Leave a Comment