Sony Group Corp cuts its first quarter profit on Friday following a frail gaming industry due to lack of interest and COVID-19 restrictions.
The company has confirmed that it will be pulling support for its upcoming game slate, but does not have information on when this might happen. The company is currently dealing with supply chain issues which damaged production of the PlayStation 5 consoles.
“Last quarter was just a bump in the road for Sony,” stated the founder of Kantan Games consultancy, Serkan Toto. “It looks like Sony is actually now getting more and more PS5s into stores, especially in the US and Europe.”
Sony’s gaming unit saw its operating profit drop 37% in the April to June quarter compared with last year, but Chief Financial Officer Hiroki Totoki says it’s because there are no top titles and things have returned back toward normalcy after pandemic conditions.
“The growth of the overall game market has decelerated as opportunities to go out have increased following a decline in COVID infections,” Totoki stated.
Sony: Sales Decreases
Sony trimmed the yearly operating profit estimation for its gaming unit by 16%, referencing an anticipated drop in games sales from external developers while considering expenses from closing that’s earlier than expected of its contract for “Halo” creator Bungie.
The operating profit estimation that ranges to groups for the year to next March was trimmed by 4% to 1.11 trillion yen ($8.37 billion).
Sony reported a 9.6% hike in first-quarter operating profit to 307 billion yen, exceeding analyst forecasts, jump started by movie and TV show demands.
The giant has stated that it targets to put 18 million of its PS5 consoles on sale this fiscal year as supply chain issues soothe and it doubles down production. It sold 11.5 million units in the year ended March.
“With recovery from the impact of the lockdown in Shanghai and improvement in component supply we are working to bring forward supply for the year-end holiday season,” Totoki said in an interview.
The giant sold 2.4 million PS5 units in the first quarter, merely a small rise from the same period last year, while software sales fell 26% to 47 million units.
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