Sony hikes annual profit forecast on film, gaming success despite virus restrictions being eased in many countries

The Japanese computer giant has already set a new record for net profit in 2020-21, thanks to a gaming boom that has swept the country.
Despite the fact that the large demand for gaming is waning as virus restrictions in many countries are removed, Sony said it is still seeing good success across sectors including as cinema, gaming, and electronics.
After raising its full-year forecast to 730 billion yen in the previous quarter, the company now expects a net profit of 860 billion yen ($7.4 billion) for the fiscal year ending March 2022.

“Operating income is expected to be higher than the October forecast due to expected increases in operating income in the pictures, game and network services, electronic products and solution and music segments,” Sony said in a statement.

A favourable foreign exchange rate and expected decrease in operating losses in other sectors including its corporate division will also boost its bottom line, it said.
Sony expects higher sales in its film division, “primarily due to an expected increase in sales… resulting from the strong theatrical performances of ‘Spider-Man: No Way Home’ and ‘Venom: Let There Be Carnage’,” it said.

“NO WAY HOME” BILLION DOLLAR PROJECT

“No Way Home”, released in December in the United States, became the first billion-dollar-grossing film of the pandemic era over the Christmas weekend, according to industry watcher Exhibitor Relations.

Sony expects the global chip shortage to hit sales of its PlayStation 5 console this financial year, but said operating income in its gaming sector would still be higher than previously forecast “due to an expected decrease in selling, general and administrative expenses”.
The company has faced challenges rolling out the PS5, which is regularly sold out and remains hard for consumers to get hold of in part due to global supply chain disruption.
The forecast comes as Sony finds itself in a battle for gaming supremacy after US rival Microsoft snapped up “Call of Duty” maker Activision Blizzard in a landmark $69 billion deal.
Sony hit back with its own acquisition announcement this week, unveiling a $3.6 billion agreement to buy US video game studio Bungie, creator of hits such as “Halo” and “Destiny”.
Net profit in the nine months to December 2021 was 771 billion yen, down 20 percent year-on-year, Sony said, with sales in the same period up 13 percent to 7.66 trillion yen.