The PS4 Has Now Shipped 63.3 Million Units, Sony's Revenue Trending Upward

Posted August 01, 2017

¥55.4 billion of Sony's operating profit was from its sensors, with revenue in the division rising 41% to ¥204.3 billion (~$1.85 billion).

It also previously forecast a dip in sales of its mainstay yet maturing PlayStation 4 games console.

The Japanese conglomerate, famed for producing the first portable cassette player at the end of the 1970s, has spent the recent past restructuring as price competition in its backbone consumer electronics business dragged down profit growth. (SON.L, SNE) reported Tuesday a significant increase in its first quarter profit, reflecting a sale gain, the absence of prior year charge as well as higher sales. Sales and operating revenue are now expected to grow 9.2 percent from past year to 8.3 trillion yen, higher than previous forecast of a growth of 5.2 percent to 8 trillion yen.

Operating income was 157.6 billion yen or $1.41 billion, significantly higher than 56.2 billion yen a year ago.

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Sony Pictures Entertainment saw sales increase 12.3 percent year-on-year to 205.8 billion yen ($1.9 billion). Under the new pricing structure, the cost of an annual membership will increase by a quarter from its current £39.99 level to £49.99; the cost of a quarterly membership will increase by the same proportion, going from £14.99 to £19.99, while the fee for those choosing to play monthly is to go from £5.99 to £6.99.

The decline in earnings happened due to the price cut on hardware and the negative impact of the exchange rate between yen and dollar.

Revenue increased in the game and network services business, which includes the popular PlayStation console and software titles. Sales were up 15.2 percent to 1.86 trillion yen. Sales for PS4 Pro and PlayStation VR haven't been provided as of yet.

Much of this success has to do with Sony's ever-growing clout in the world of photographic image sensors, which the company invested $4 billion in to ramp up further in 2015 before spinning the division off as a new company called Sony Semiconductor Solutions. For Semiconductors, sales are expected to be lower than the earlier forecast primarily due to lower-than-expected image sensor unit sales for mobile products.