Sony Shares Fall 6 Percent After Quarterly Profit Slides, Gaming and Image Sensors Demand Sparks Concerns

The PlayStation 5 console launched in late 2020 but supply was badly affected by supply chain problems during the COVID-19 pandemic.

By Reuters | Updated: 10 August 2023 10:10 IST

Sony Shares Fall 6 Percent After Quarterly Profit Slides, Gaming and Image Sensors Demand Sparks Concerns

Photo Credit: Reuters

Sony is also a leading maker of image sensors used in cameras

Highlights

Sony said July promotions are improving sales momentum for the PS5
PlayStation 5 sales were below expectations in the April-June quarter
Sony also revised down its image sensors expectations

Shares in Japan's Sony fell 6 percent in Tokyo trade after first-quarter profit tumbled, with the entertainment conglomerate reporting lacklustre performances by its movie and financial divisions.

Operating profit slid 31 percent and comments by Sony executives over demand for its games and image sensors units also sparked concern.

The PlayStation 5 console launched in late 2020 but supply was badly affected by supply chain problems during the COVID-19 pandemic. Despite an easing of those snarls, Sony said sales were below expectations in the April-June quarter. It is targeting sales of 25 million units for the full year.

Samsung Wins Patent for a Tri-Fold Smartphone With Specialised Barrier Layer for Improved Durability

Sony sold 3.3 million PS5 units in quarter. By comparison, Nintendo's Switch console, which is in its seventh year on the market, sold 3.9 million units in the same period as consumers rushed to play the latest "Zelda" title.

Sony said promotions that began are July are improving sales momentum for the PS5.

"Sony started discounting the PS5 in the West, which is never a good sign," said Serkan Toto, founder of the Kantan Games consultancy.

PS5 Cloud Streaming Beta Is Here for Select PS Plus Premium Members

"The company has a lot of work to do, first and foremost to make sure those blockbuster first-party games come out quicker."

"Marvel's Spider-Man 2" is due for release in October ahead of the key year-end shopping season. Its predecessor has sold more than 13 million units.

Sony, a leading maker of image sensors used in cameras, also revised down its expectations for a gradual recovery in the smartphone market, saying it now does not expect one until 2024 at the earliest due to weak demand in major markets.

Netflix Launches Game Controller App for iOS, Connects to TV Screens

The company trimmed cut its annual operating profit forecast for the unit by 10 percent, citing the impact of lower sales.

Adjustment to procurement by smartphone manufacturers is having a large impact in the second quarter, Sony said.

The current financial year "will be tough" for the sensors division, Jefferies analyst Atul Goyal wrote in a client note, adding that higher margins are expected in the following year.

From the launch of the Infinix GT 10 Pro to Amazon's latest mega-sale, we discuss the most noteworthy technology news events of the week on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.