Investing.com -- Sony (NYSE:SONY) reported a 73% increase in group operating profit for the July-September quarter, driven by strong performance in its gaming and network segment.
The company’s diverse portfolio, spanning music, movies, gaming, and semiconductor products, helped maintain its annual profit outlook at 1.31 trillion yen ($8.51 billion) for the fiscal year ending in March, close to analysts’ consensus of 1.34 trillion yen, according to LSEG.
Sony, which on Nov. 7 launched PlayStation Pro, an enhanced version of its flagship gaming console with improved graphics, also raised its fiscal 2025 revenue projection to 12.7 trillion yen, a slight increase from its prior 12.6 trillion yen target.
For the July-September quarter, Sony’s operating profit surged to 455.1 billion yen, up from 263 billion yen during the same period last year. Revenue reached 2.97 trillion yen ($19.4 billion), reflecting a 9% increase but falling just below the 3.03 trillion yen forecast.
Sony’s US-listed shares rose more than 4% in premarket trading Friday.
Sony’s game and network services division posted nearly triple its profit, reaching 138.8 billion yen. Revenue in this unit came in at 1 trillion yen, an 11% increase year-over-year.
This growth in Sony’s gaming segment is largely attributed to the rise in digital game purchases and the popularity of its PlayStation Plus subscription service. However, hardware sales have lagged amid a softer console market, affected by a lack of high-profile, triple-A game releases.
Analysts are optimistic about a turnaround in the gaming sector next year, fueled by the anticipated debut of a new Nintendo Switch (NYSE:SWCH) model and the much-awaited release of ‘Grand Theft Auto VI’.
PlayStation 5 sales totaled 3.8 million units for the September quarter, a 22% decline year-over-year. However, Sony reported a significant 28% rise in game software sales for the quarter, reaching 612.3 billion yen.