• Sony’s operating profit during the Q3 2020 surged by 20% and had reached USD 3.41 billion.
• The company expects to sell around 7.6 million PlayStation 5 consoles by March 2021.

Japanese multinational conglomerate Sony Corporation has reportedly raised its profit outlook by one-third amidst the high demand for home entertainment amidst the COVID-19 lockdowns. The company expects to sell around 7.6 million PlayStation 5 consoles by March 2021.

Despite the proliferating sales of movies, games, and other content during the pandemic in 2020, Sony claims to have struggled with PlayStation 5 production owing to the global shortage of semiconductors.

The Tokyo-based electronics manufacturer has reportedly informed its customers that they might have to wait longer for their PS5 consoles while it competes for chips with other business verticals ranging from car companies to smartphone markers.

Priced at USD 500 per unit, Sony’s PlayStation 5 consoles were quickly sold out following its November launch on online retail platforms in Japan and the United States, primarily due to the high demand for videogames from people stuck at home during the COVID-19 pandemic.

A shift to new gaming consoles is also likely to encourage users to move towards online subscription services or downloads, further allowing Sony to boost the profit of its gaming business.

Chief Financial Officer Hiroki Totoki mentioned in the press conference that the Japanese corporation has resumed some of its image sensor shipments to China.

Sony’s operating profit during Q3 2020 surged by 20% and reached USD 3.41 billion, surpassing analysts' estimations. Moreover, the company expects to record USD 8.95 billion in operating profit by March-end as compared to its previous predictions of reaching USD 6.65 billion.

However, Sony is planning to shut down its Malaysian production facility which develops which produces headphones, home audio equipment, and other products.

Source Credits –

https://www.reuters.com/article/us-sony-results/sony-raises-profit-outlook-by-a-third-amid-coronavirus-home-entertainment-boom-idUSKBN2A30NG