Sony posts record Q1 profit as new strategy lift its game

Yolanda Curtis
August 3, 2018

Revenue rose 5.1 percent to 1.95 trillion yen, topping the forecast for 1.87 trillion yen.

With games like Spider-Man, Assassin's Creed: Odyssey, Battlefield V and Red Dead Redemption 2 coming this year and Ghost of Tsushima and Hideo Kojima's Death Stranding later, Sony is still expected to make some solid profit from the PS4 division.

These two games will be available at no additional cost to active PS Plus subscribers, as the titles can be downloaded for free on PlayStation 4 consoles starting on Tuesday, August 7, 2018.

Profit jumped 24 percent in April-June to 195 billion yen ($1.75 billion).

Annual sales are projected to rise slightly, with operating profit unchanged.

This is stark contrast to April this year, when the company's Chief Executive Officer Kenichiro Yoshida gave a rather pessimistic forecast for the full year, which sent Sony's shares plunging.

"The Yoshida team got off to a flying start", said Hideki Yasuda, an analyst at Ace Research Institute in Tokyo. That being said, Sony seems to be optimistic about the next year. "It has been a smooth power transfer", after Sony's recovery and the company "is forecast to continue displaying a strong performance at quite high levels".

Hirai spent the past six years digging the company out of deep financial trouble, leading aggressive restructuring and scrapping thousands of jobs while selling business units and assets. This comes as no surprise considering the console is in its fifth year of sales. While the numbers might not sound that impressive compared with other companies like Samsung or Apple, Sony recorded $17.9 in revenue and $1.8 billion of profit in the recent quarter that ended in June. With that said, the PS4 still has some ways to go if it wants to catch up to the PS1 or PS2, which sold 102.5 million and 155 million units respectively.

Since launching in November 2013, the PS4 has gone on to sell 82.2 million units, closing in on the PS3's 84 million lifetime sales.

For the year to March, Nintendo maintained optimistic annual targets, forecasting net profit of ¥165 billion and operating profit of ¥225 billion on sales of ¥1.2 trillion.

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