Sony's Q2 profit falls 29% driven by sluggish chips division
Sony's operating profit fell by 29% in the July-September quarter, reaching 263 billion yen ($1.74 billion). The decline was attributed to underperformance in the image sensor and financial sectors. Sony President Hiroki Totoki noted, "The North American market shows a significant year-on-year decline and at this point, there's no change to our view that a recovery in the market will take place from next fiscal year."
The profit of Sony's chips division slumped by 37%
The chip division of Sony saw a 37% decline in profit, affected by increased costs and sluggish sales of image sensors utilized in smartphones. Despite the downturn, Sony held onto its sales goal of 25 million PlayStation 5 (PS5) consoles for the current fiscal year. Totoki recognized the challenge in reaching the PS5 target, stating, "It's not something we can attain very easily."
PS5 and 'Spider-Man 2' sales
In the second quarter, Sony sold 4.9 million PS5 units, bringing its total sales for the fiscal year to 8.2 million units. A portable device that links to the PS5 via WiFi is slated to debut next week. Moreover, Marvel's Spider-Man 2 has sold five million units since its October 20 launch, providing a boost ahead of the holiday shopping season.
Sony collaborating with Nintendo on the "Zelda" franchise
Sony's film division will co-finance and distribute a live-action adaptation of Nintendo's legendary Zelda series, opening the door for potential collaboration between the two prominent Japanese entertainment firms. Jefferies analyst Atul Goyal weighed in on the partnership, stating, "Sony's strong distribution network and publishing track record could make it a strategic move for Nintendo." Sony shares ended down 0.8% on Thursday ahead of the earnings report on the Tokyo Stock Exchange.
