Sony reports 24 pct jump in Q1 operating profit, beats estimates

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The company reported profits of 226.4 billion yen ($2.0 billion) for the April to June quarter, up from 80.9 billion yen in the same period previous year and 21.2 billion yen in 2016.

Nevertheless, Sony revised upward its financial projections for the year to March on a weaker-than-expected yen and the solid game business. Revenue and operating profit are also expected to increase between now and the end of the fiscal year.

Japan's Sony on 31st July reported a record first-quarter operating profit on the back of strong sales of gaming software, giving support to the new management's strategy of focusing on stable sources of revenue.

In gaming, profit rose nearly five times to 83.5 billion yen, as high-margin online software and Sony-made titles such as "God of War" compensated for slowing sales of PlayStation 4 consoles.

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Separately, Nintendo Co yesterday said its quarterly net profit jumped 43.9 percent year-on-year to US$275 million, driven by the global popularity of its Switch console and game titles.

"In parallel with an increase in digital sales, software sales also have been moving in good shape towards the holiday season", it said. It previously projected that net profit would fall 2.2 percent to 480 billion yen. It kept its profit forecast for the year ending March at 670 billion yen, down 9 percent on year, citing various risks including competition in smartphones. The dollar is now expected to average 110 yen for the full year, compared to its earlier forecast of 105 yen.

Worldwide sales of the PlayStation 4, released in 2013, totaled 3.2 million units in the first quarter, down from 3.3 million a year earlier.

At the same time it sold 17.96 million software units, more than double the same period a year ago. Unfortunately, Sony hasn't issued an updated figure since then, but the console has likely edged towards the 80 million mark in the six months since.