Sony has reported a major decline in profits for the last quarter of 2019 as the company’s smartphone sales weaken and the PlayStation 4 hits the end of its lifecycle.
The Japanese conglomerate’s profits declined by 48% in the quarter, which included holiday season sales. The total profit reported as $2.10 billion was down from $3.83 billion reported in the same quarter last year. Revenue, on the other hand, increased by a small margin to hit $22.5 billion as compared to last year’s $21.4 billion.
Playstation 4 sales dropped by 25% this year with quarterly shipments at 6.1 million and 14.7 million for the whole year. In contrast, the company sold 17.7 million consoles in 2018 and 19.4 million in 2017. However, none of this should be a surprise to Sony as the Playstation 3 experienced a similar slowdown at the end of its life.
The dismal performance at the company’s film division was also another major blow to its profits. The department reported a $51 million profit for the quarter down from last year’s $107 million.
Sony’s imaging and sensor business that produces smartphone lenses and image processors was a bright spot for the company. Smartphone makers are racing to put more cameras on their devices and this resulted in major success for Sony. Sales improved by 29% and total profits reached $690 million. The company was forced to double its capital to meet the demand in 2019.
Despite everything, analysts estimate a better first quarter for Sony this year. They are expecting Sony’s profits to hit $8 billion in Q1 2020.