Sony said sales of its flagship PlayStation 5 console totalled 20.8 million in the fiscal year 2023 slightly lower than an already revised-down 21 million unit target.
In the fiscal year 2023, Sony on Tuesday disclosed a 7% decrease in yearly earnings, citing a slump in its gaming segment.
Here’s how Sony did in the March quarter versus LSEG consensus estimates:
* Revenue: 3.5 trillion yen ($22.4 billion) versus 2.89 trillion yen expected. That represents a 14% increase year-over-year — but the first drop since Sony’s 2020 September quarter, according to LSEG data.
* Operating profit: 229.4 billion yen versus 236.81 billion yen expected. That marks a 57% jump year-over-year.
The Japanese gaming behemoth unveiled a 2023 revenue of 13 trillion, marking a 19% surge compared to the previous year.
However, Sony's annual operating profit amounted to 1.2 trillion, experiencing a 7% decline year-over-year.
The quarterly revenue downturn follows Sony's February revision of its projections for the leading PlayStation 5 console. Initially anticipating sales of 25 million units in the fiscal year, the firm adjusted its forecast to 21 million units.
The adjusted target of 21 million units, which Sony disclosed to investors in February, falls slightly below the newly revised figures.
Before this adjustment, the company had initially projected sales of 25 million units for the full year.
According to Reuters, a Sony executive stated that the company anticipates even weaker sales, targeting 18 million units of its PS5 by the end of March 2025.
Following an announcement on Monday, Sony underwent a restructuring in its Sony Interactive Entertainment (SIE) gaming unit. Hiroki Totoki, the interim CEO, has now assumed the role of chairman within the business.
In this reshuffle, long-standing Sony executives Hideaki Nishino and Hermen Hulst were appointed as CEOs of the Platform Business Group and Studio Business Group, respectively. These are newly formed divisions within SIE.
Financial unit weighs on profit
Sony attributed the primary decline in profit to its financial services division.
In 2023, the operating income of the financial services unit decreased by 22.5% year-on-year, totaling 173.6 billion yen, following a robust growth in 2022.
The company also faced challenges in its imaging and sensing solutions (I&SS) business, particularly with its imaging chips.
Operating income for Sony's I&SS business dipped to 193.5 billion yen, marking a 9% decrease from 2022.
Sony has projected a decrease in overall group revenue for the current fiscal year, estimating sales to reach 12.3 trillion yen by March 2025, down 5%.
For fiscal year 2024, Sony anticipates an operating income of 1.28 trillion yen, representing a 5% increase, according to its consolidated results.
