Sony's operating profit surged by 73% in Q2 2024, reaching 455.1 billion yen ($3 billion), driven primarily by strong sales in its gaming and network services. This growth has allowed the company to maintain its profit forecast of 1.31 trillion yen ($8.51 billion) for the fiscal year ending March 2025. Notably, the gaming and network services segment contributed over a third of Sony's total revenues, with profits nearly tripling to 138.8 billion yen. Despite a 22% year-on-year decline in PlayStation 5 sales, which totaled 3.8 million units, Sony has kept its sales forecast at 18 million units for the year. The recently launched PS5 Pro on November 7, 2024, is expected to bolster sales further. [0a35811f]
However, Sony's pictures segment faced challenges, with profits falling to 18.5 billion yen due to delays in TV series releases linked to Hollywood strikes in 2023. This has raised concerns about the impact of these delays on overall profitability in the entertainment sector. The company has also reported that the yen's weakness against the dollar and euro has positively influenced its earnings. [cbf2fbe3]
In comparison, Samsung Electronics reported a remarkable six-fold increase in net income to $6.96 billion in the June quarter, driven by the artificial intelligence boom and high demand for server-related products. Samsung's semiconductor division posted a better-than-expected operating profit of 6.45 trillion won, marking its second consecutive quarter in the black after four successive losses. The company plans to expand its capacity for high-value-added products for AI in the second half of the year. [b61105b9]
While Sony's gaming division continues to thrive, the company has experienced a slump in console sales, which were down from 3.3 million to 2.4 million units. This decline is attributed to the impact of foreign exchange rates and a shift in consumer preferences. Despite these challenges, Sony's gaming revenues increased by 12%, bolstered by strong sales of first-party software and PlayStation Plus subscriptions, which reached 116 million monthly active users in June, the highest for this time of year. [16cdb840]