The PS4 has finally overtaken the PS3 in Sony's latest financial report

Gerald Bowen
August 3, 2018

Japan's Sony Corp (6758.T) reported record first-quarter profit on Tuesday as sales of game software surged, and bumped up forecasts for gaming and chips, lending support to a new strategy focused on stable income. The net profit forecast increases to JPY 500 billion from JPY 491 billion a year ago and JPY 480 billion in the earlier outlook. The PlayStation division brought Sony a total profit of around $750 million, that is twice as much as any other department did.

The company also stated that revenue went up by 5.1% to ¥1.95 trillion (~$17.42 billion), highest than the market expectations of ¥1.87 trillion (~$16.71 billion).

Increasing smartphone competition means Sony "may need to cut the smartphone business outlook further or revise the current midterm business plan", Totoki said. Sony recorded a one-time gain of 53.9 billion yen from the sale and said its remaining shares have a fair value of 95.3 billion yen.

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PS4 continues to sell well this year with exclusives like God of War, Detroit: Become Human and boosted with help from Third Party games like Fortnite. Annual results are now expected to reach JPY 2.135 trillion in sales and JPY 250 billion in profit. The company also had a few surprises to share in the quarter at the Electronic Entertainment Expo (E3).

Music: Streaming continued to grow, with Spotify last week announcing monthly active users had grown to 180 million, topping estimates. Sony note that a lot of the profit came from sales via the PSN as gamers slowly move towards digital purchases rather than physical discs. Cooling demand for smartphones was the primary driver in Sony's weaker-than-expected full-year forecast in April. While Playstation might be the ace in Sony's pack, it was the smartphone division that once again showed why the Japanese giant is lagging behind the likes of Samsung and Apple. During this quarter Sony sold 40 million games, and the company even managed to hold a steady PlayStation Plus subscribers numbers at 33.9 million, compared to 34.2 million at the end of March.

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