Sony put a lot of money into software development and acquisitions in the second quarter — a fact reflected in a big drop in profits.
The Tokyo-based conglomerate’s Game & Network Services segment posted $4.8 billion in sales in fiscal Q2 compared to $4.4 billion for the same period the year prior — but suffered a 49% drop in profit for the quarter ending Sept. 30.
The segment reported an operating income of $284 million during the quarter, down from $558 million in Q2 2021.
- Sony sold 3.3 million units of the PlayStation 5 in fiscal Q2 — equal to Q2 2021.
- It increased the price of the PS5 in Europe and Japan due to the strengthening dollar.
Sony plans to increase production of the PS5 and diversify its game portfolio. It aims to sell over 18 million PS5 units in FY2023, up from 11.5 million in FY2022.
The tech and gaming giant posted $19.93 billion in sales in Q2 and a net income of $1.54 per share, beating Wall Street estimates of $1.07. It raised its full-year operating forecast to $7.84 billion — up 4.5%
Branching Out
In August, Sony announced that it’s diversifying its portfolio by tapping into mobile games — the fastest-growing gaming category — with a PlayStation mobile gaming unit.
Sony also agreed to acquire video game developer Bungie for $3.6 billion in January.
Bungie, the original creator of “Halo” and the current developer of “Destiny,” will use Sony to accelerate the development of projects.
