On Tuesday (5th August 2020), Japan’s Sony corporation reported a 1.1% decline in first-quarter operating profit, which is much milder than market estimates. The company’s gaming business thrived during the lockdown thanks to the PlayStation Plus (PS Plus) premium network subscription service that maintained its trajectory.
Initially, the conglomerate denied making any estimates regarding this crucial quarter due to the uncertain economic disruptions that came with it. Yet it performed better than most.
Sony has a total of seven operating segments; out of those, the ones that focus primarily on entertainment through music or film have experienced drops in revenue. However, the Gaming & Network Services (G&NS) segment roared back to life, helping the company stay afloat.
Although year-over-year hardware sales fell, the segment pulled through and awarded Sony with a 32% revenue growth. Moreover, the revenue was fueled by a whopping 121% positive change in Sony’s earnings through Digital Sales, and 65% growth in sales exhibited via in-game items, currency, and upgrade options.
The electronics and entertainment firm posted April-June profit of 228.4 billion yen ($2.15 billion), versus 230.9 billion yen a year prior. Meanwhile, due to the impact of novel Coronavirus, the firm forecasts profits to fall 26.7% to 620 billion yen in the year through March 2021, its lowest in four years.