Pandemic-led lockdowns push Sony’s operating income to record higher in June quarter

Japanese tech giant Sony’s operating profit beat estimates to rise to 280.1 billion yen (approx. Rs 18,970 crore) in the June quarter from 221.7 billion yen (approx. Rs 15,010 crore) in the year-ago period. The record operating profit came on the back of robust demand for its PlaySation 5 gaming consoles, music, TVs, and films amid pandemic-induced lockdowns.

The robust 1st-quarter functionality led Sony to raise its forecast. The enterprise has revised its profit forecast to March 2022 to 980 billion yen (approx. Rs 66,360 crore) from 930 billion yen (approx. Rs 62,965 crore).

With coronavirus-led lockdowns easing across the world, the enterprise had anticipated the demand for devices and content to go down. However, the fresh wave of Covid-19 infections has led to restrictions becoming reimposed in various components.

However, the semiconductors shortage plaguing even the likes of Apple has made it hard for Sony to generate sufficient PlayStation consoles to meet the increasing demand. These constraints could also hit customer electronic device production, Sony’s Chief Financial Officer Hiroki Totoki stated.

In May, Sony had announced it anticipated PlaySation 5 sales to be about 14.8 million units this fiscal. However, the console, priced at $500 (approx. Rs 37,118) immediately sold out. Totoki stated the enterprise had secured sufficient chips to hit its production target.

According to Reuters, Sony desires to use the console to connect its conventional customer electronics with its content small business via on the web game downloads and subscription services. The enterprise is also beefing up its entertainment content and distribution small business, agreeing to purchase AT&ampT’s animation small business in December.

Sony is also rising its footprint on streaming services such as Disney+ and Netflix by rising its film supplying as Covid-19 delays releases in theatres.

It has also indicated its willingness to continue expanding its content small business via acquisitions, and stated in May that it would invest 2 trillion yen more than 3 years on strategic investments.

Originally appeared on: TheSpuzz