This post was originally published on this site
In the quarter that ended March 31, Sony reported a profit of 138.6 billion yen ($1.06 billion), up from 66.5 billion yen in the year-ago period, though below the consensus estimates of 147 billion yen.
The company’s earnings in its gaming and network services segment nearly tripled in the quarter to 55.6 billion yen. However, Sony expects profits from that segment to decline by 12% as it plans significant investments in game development and acquisitions.
Sony also announced a $200 billion share repurchase plan for the following twelve months to prevent dilution of its shares from stock option compensation plans.
The company announced it plans to sell 18 million PlayStation 5 units this fiscal year after strong demand for video games helped the Japanese company more than double its Q4 operating profit.
On the other hand, Sony said that the production target might change in the future if new lockdowns in China to curb the coronavirus weighs on component procurement.
“What I can say now is that we can procure enough components for 18 million units,” said Sony CFO Hiroki Totoki at a press briefing.
Last year, Sony sold 11.5 million consoles as the company struggled to drive its sales due to coronavirus-induced supply constraints.
The conglomerate uses its iconic PlayStation consoles to further boost sales through video game purchases and paid subscription services. Moreover, Sony shifted away from traditional hardware products such as TVs and focused on its software business.
In February, Sony purchased Bungie for $3.6 billion, creators of popular video games like Halo and Destiny.
New York-listed Sony (NYSE:SONY) price is down nearly 1% in pre-open Tuesday.
By Senad Karaahmetovic
