Sony Shares Fall 6 Percent After Quarterly Profit Slides, Gaming and Image Sensors Demand Sparks Concerns

The PlayStation 5 console launched in late 2020 but supply was badly affected by supply chain problems during the COVID-19 pandemic.

Advertisement
By Reuters | Updated: 10 August 2023 10:10 IST
Highlights
  • Sony said July promotions are improving sales momentum for the PS5
  • PlayStation 5 sales were below expectations in the April-June quarter
  • Sony also revised down its image sensors expectations

Sony is also a leading maker of image sensors used in cameras

Photo Credit: Reuters

Shares in Japan's Sony fell 6 percent in Tokyo trade after first-quarter profit tumbled, with the entertainment conglomerate reporting lacklustre performances by its movie and financial divisions.

Operating profit slid 31 percent and comments by Sony executives over demand for its games and image sensors units also sparked concern.

Advertisement

The PlayStation 5 console launched in late 2020 but supply was badly affected by supply chain problems during the COVID-19 pandemic. Despite an easing of those snarls, Sony said sales were below expectations in the April-June quarter. It is targeting sales of 25 million units for the full year.

Sony sold 3.3 million PS5 units in quarter. By comparison, Nintendo's Switch console, which is in its seventh year on the market, sold 3.9 million units in the same period as consumers rushed to play the latest "Zelda" title.

Sony said promotions that began are July are improving sales momentum for the PS5.

Advertisement

"Sony started discounting the PS5 in the West, which is never a good sign," said Serkan Toto, founder of the Kantan Games consultancy.

"The company has a lot of work to do, first and foremost to make sure those blockbuster first-party games come out quicker."

Advertisement

"Marvel's Spider-Man 2" is due for release in October ahead of the key year-end shopping season. Its predecessor has sold more than 13 million units.

Sony, a leading maker of image sensors used in cameras, also revised down its expectations for a gradual recovery in the smartphone market, saying it now does not expect one until 2024 at the earliest due to weak demand in major markets.

Advertisement

The company trimmed cut its annual operating profit forecast for the unit by 10 percent, citing the impact of lower sales.

Adjustment to procurement by smartphone manufacturers is having a large impact in the second quarter, Sony said.

The current financial year "will be tough" for the sensors division, Jefferies analyst Atul Goyal wrote in a client note, adding that higher margins are expected in the following year.

© Thomson Reuters 2023


From the launch of the Infinix GT 10 Pro to Amazon's latest mega-sale, we discuss the most noteworthy technology news events of the week on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Affiliate links may be automatically generated - see our ethics statement for details.
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Google's AI Studio Will Soon Let Android Users Vibe Code Apps
  2. Xiaomi 17 Max Debuts With 8,000mAh Battery, Leica-Tuned Cameras: See Price
  3. Oppo Find X9s With Hasselblad-Tuned Cameras Arrives in India at This Price
  4. Oppo Find X10 Series Tipped to Launch With Notable Battery Upgrades
  5. Gemini Offers Agentic Design Creation With New Adobe and Canva Connectors
  1. Scientists Discover New Fuel-Saving Route to the Moon
  2. Madhu Vidhu OTT Release: Where to Watch, Plot, Cast, IMDb Rating, and More
  3. Maa Behen OTT Release Revealed: When and Where to Watch it Online?
  4. LOL: Last One Laughing Germany Season 7 Out on OTT: Know Where to Watch it Online
  5. Warrant: From the World of Vilangu OTT Release Date: When and Where to Watch it Online?
  6. Xiaomi Clip Open-Ear Earbuds Launched With LHDC 5.0 Audio, Up to 38 Hours Total Battery Life: Price, Specifications
  7. Sathi Leelavathi Now Streaming on SunNXT: Everything You Need to Know About Plot, Cast, and More
  8. Xiaomi Smart Band 10 Pro Launched With 1.74-Inch AMOLED Screen, Up to 21 Days Battery Life: Price, Features
  9. Honor Developing Wide-Foldable Phone With Snapdragon 8 Elite Gen 6 SoC, Tipster Claims
  10. Google’s Gemini Offers Agentic Design Creation With New Adobe and Canva Connectors
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.