Sony has increased its annual net profit forecast after a strong performance in the first quarter, expecting high sales in video games, music, and image sensors used in iPhones. The weakening of the yen against the dollar has benefited the Japanese conglomerate.
CEO Hiroki Totoki confirmed that Sony has decided against a rumored takeover of Paramount, deeming it not a suitable strategic fit at this time. Instead, Paramount has merged with production company Skydance.
In the April-June period, Sony saw a six percent increase in net profit to 231.6 billion yen ($1.6 billion), surpassing analyst expectations. The company now predicts a net profit of 980 billion yen in 2024-25, a six-percent rise from the previous year.
Sony’s music streaming business has been lucrative, especially with top artists like Beyonce and Lil Nas X. The company attributes its success in music to an increase in paying subscribers for streaming services and market expansion in emerging countries.
In the gaming sector, Sony’s PlayStation 5 console remains popular, with upcoming titles like “Astro Bot” and “God of War Ragnarok” expected to contribute to profits. The company also mentioned a hit movie lineup including “Bad Boys: Ride or Die” and “The Garfield Movie”.
Analysts predict that Sony could achieve record profits this year in image sensors and gaming, especially with new leadership focusing on optimizing PS5 platform profits through improved supply chain management.
