- Sony profit slides on chip slump, keeps PS5 sales target

Sony’s operating profit fell 29% in the July-September quarter due to weaker performance in its image sensor and financial divisions. The profit for the quarter was 263 billion yen, lower than the estimated 306 billion yen. Sony has transitioned from being a creator of household electronics to an entertainment behemoth involved in games, movies, and music, as well as being a leading image sensor maker. The chips division of Sony experienced a 37% slump in profit due to higher expenses and weaker sales of image sensors used in smartphones. Sony President Hiroki Totoki stated that the North American market showed a significant decline, but a recovery is expected in the next fiscal year. Sony maintained its sales target of 25 million PlayStation 5 (PS5) consoles for this financial year and sold 4.9 million units in the second quarter. The recent release of “Marvel’s Spider-Man 2” has sold five million units, providing optimism for the year-end shopping season. Despite the success of rival Nintendo, Sony hiked its full-year sales forecast for the games unit and maintained its profit forecast. Sony’s movie division will co-finance and distribute a live-action adaptation of Nintendo’s “Zelda” franchise, leading to speculation of further collaboration between the two companies. Sony shares ended down 0.8% on Thursday, but have seen a 32% increase this year.