by Sam Nussey
TOKYO (Reuters) – Sony reported operating profit on Thursday fell 29 percent in the July-September quarter, below estimates, hurt by weaker performance in its image sensor divisions and financial services.
The Japanese conglomerate’s profit over this period was 263 billion yen (1.63 billion euros), compared to 306 billion yen expected by 10 analysts surveyed by LSEG.
Once the creator of iconic electronic devices such as the Walkman, Sony has transformed itself into an entertainment giant offering games, movies and music, as well as image sensors.
Profit at Sony’s semiconductor division fell 38%, driven by higher expenses and lower sales of image sensors.
The group is targeting the sale of 25 million PlayStation 5 consoles during this financial year. However, it said in July it was resorting to promotions to compensate for slower-than-expected sales.
The recent announcement of the departure of Sony’s games director, Jim Ryan, next March surprised industry analysts.
Sony’s rival Nintendo has enjoyed a string of successes in recent months, continuing to attract gamers despite its lack of graphical innovation compared to Sony and Microsoft, the maker of the Xbox.
Sony’s film division will co-finance and distribute a live-action adaptation of Nintendo’s iconic “Zelda” franchise, leading analysts to consider the possibility of a new collaboration between the two major Japanese entertainment companies.
“Sony’s strong distribution network and publishing track record could be a strategic move for Nintendo,” Jefferies analyst Atul Goyal wrote in a note ahead of Sony’s earnings release.
(Reporting by Sam Nussey; French version by Dagmarah Mackos, editing by Kate Entringer)
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