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Sony aims to sell 18 million PS5 consoles this year at risk of blockade in China

Sony Group (6758.T) said on Tuesday that it plans to sell 18 million PlayStation 5 consoles this year as strong game sales contributed more than double its operating profit in the fourth quarter.

However, Japanese companies warn that if a new blockade is made in China to curb the spread of COVID-19 and it becomes difficult to procure parts, it may be forced to revise its production target. bottom.

“What I can say now is that we can procure 18 million parts,” Sony Chief Financial Officer Hiroki Totoki said in a press conference.

Sony encourages you to download online games and sign up for subscription services using the popular PlayStation 5 game console. Last year’s business struggled like any other consumer electronics company due to COVID 19’s supply chain disruption, with sales of 11.5 million units.

With the move away from traditional hardware such as TVs, the company is also expanding its software business, announcing the acquisition of Halo video game creator Bungle Inc for $ 3.6 billion in February.

Sony’s profits for the three months to March 31 increased from 66.5 billion yen in the previous year to 138.6 billion yen ($ 1.06 billion). However, the average profit of 10 analysts surveyed by Refinitiv was less than 147 billion yen.

Revenue in the gaming and network services business almost tripled in the quarter to ¥ 55.6 billion. This year Sony expects a 12% reduction in profits from the unit as it invests in game development and spends on acquisitions.

For the entire period through March 31, the profits of the movie unit from the success of the movie “Spider-Man: No Way Home” also boosted revenue.

Japanese companies forecast that operating profit will decrease from 1.2 trillion yen to 1.16 trillion yen this year. Refinitiv data show that the forecast is lower than the average profit of 1.21 trillion yen based on forecasts from 23 analysts.

Sony announced on Tuesday that it will buy up to 200 billion shares of its shares over the next 12 months to avoid diluting its shares through stock option compensation plans.

https://cyprus-mail.com/2022/05/11/sony-aims-to-sell-18-million-ps5-consoles-this-year-amid-china-lockdown-risk/ Sony aims to sell 18 million PS5 consoles this year at risk of blockade in China

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