Sony has one per cent profit rise, despite PS5 supply complexities

Japan’s Sony Group announced a surprise 1 per cent rise in operating profit for its second quarter though costs from growing sales of its PlayStation 5 (console pressed on margins.

Weaker profitability in the key games segment could also not stop the group hiking its full-year operating forecast by 6 per cent to 1 trillion yen (£6.4bn) from its August forecast, driven by expected profit growth in movies, music and electronics.

Sony said it has sold a cumulative 13.4m units PS5 units since launch last November. That contributed to a 27 per cent year-on-year jump in sales at its gaming unit, though profit was less robust as the conglomerate sold hardware below cost.

Manufacturers frequently sell new consoles at a loss as they build an install base for software sales, with component shortages providing extra pain for makers of the latest generation of devices.

Chief Financial Officer Hiroki Totoki said Sony is on track to sell 14.8 million PS5 consoles this financial year – a target that takes into account the global shortages. Sales of first-party titles fell, though sales from other developers grew.

Gaming firms’ earnings were flattered last year by stay-at-home demand during the depths of the COVID-19 pandemic. Since then, sliding PlayStation user numbers have stabilised, Totoki said, as the company approaches the year-end shopping season.

Sony reported group profit of 318.5 billion yen (£2.83bn) for July-September.