Sony Raises Revenue Outlook Thanks to Strong PlayStation Sales

By Stefanie Fogel

LOS ANGELES (Variety.com) – Sony expects to have a good fiscal year thanks, in part, to robust sales.

The company expects to make a net income of 500 billion yen from 8.6 trillion yen in sales through next March, it said in an earnings report on Tuesday. Previously, it forecasted 480 billion yen and 8.3 trillion yen, respectively.

Game sales in the first quarter were higher than expected, rising 36% year-on-year to 472 billion yen in Q1 2018. Operating income reportedly increased 4.7 times year-on-year to 83.5 billion yen. This was primarily due to higher PlayStation 4 software sales, including digital purchases through the network. The PS4 exclusive “God of War,” and other third-party titles, are significantly exceeding expectations, said. Kratos’ latest outing reportedly sold over five million copies in the first month alone, while Quantic Dream’s “Detroit: Become Human” reportedly reached one million units sold two weeks after launch. Titles announced during E3 in June are also reportedly receiving strong feedback.

Sony now expects sales from its game and network services segment to rise 15% in the current fiscal year. The upward revision is primarily due to higher-than-expected PS4 software sales, the impact of foreign exchange rates, and an upward revision in unit sales of PS4 hardware, the company said.

Another reason for Sony’s bump is Spotify. It sold approximately half of its shares in the music streaming giant during its first month on the New York Stock Exchange.

Overall, Sony said its Q1 sales increased 5% compared to the same quarter the previous fiscal year to 1.95 trillion yen, beating the company’s previous forecast of 1.87 trillion yen. Operating income increased 24% year-on-year to 195 billion yen.