Sony updates its gaming revenue forecast, and its quarterly operating profit exceeds expectations.

• Sony slightly increased its revenue target for fiscal year 2025, from 12.6 billion yen to 12.7 trillion yen.
• The tech giant exceeded expectations with a 69% increase in operating income for the September quarter.
• Sony's game and network services division, which includes the popular PlayStation home console brand, showed strength.

The gaming business of the company had a strong quarter, resulting in raised sales guidance for the full year and an operating profit that surpassed analyst expectations on Thursday.

In contrast to LSEG consensus estimates, how did the company perform in the September quarter?

• The actual revenue of 2.97 trillion Japanese yen ($19.4 billion) was 9% higher than the expected revenue of 3.03 trillion yen, but fell short of analyst expectations.
• The company's operating profit exceeded expectations by 109.03 billion yen ($719 million), resulting in a 73% year-over-year increase to 445.1 billion yen ($2.91 billion).

Sony has slightly increased its revenue target for fiscal year 2025 to 12.7 trillion yen from the previous target of 12.6 billion yen. Additionally, the company expects full-year operating profit of 1.3 trillion yen, which is in line with its previous forecast.

Sony's game and network services division, which includes the popular PlayStation home console brand, generated 1 trillion yen in revenue, up 11% year-over-year.

Despite weak console sales due to a dearth of highly anticipated triple-A games, Sony's gaming division has performed well owing to the transition to digital game purchases and the popularity of the PlayStation Plus subscription service.

The gaming industry is predicted to improve in the next year due to several factors, including the launch of a new Nintendo Switch model and the release of Grand Theft Auto VI.

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