Sony Q1 profit tumbles as movie business disappoints

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TOKYO :Japan's Sony on Wednesday said first-quarter profit tumbled due to weaker performances from its movies and financial businesses. In April-June, operating profit slid 31 per cent to 253 billion yen ($1.8 billion), in line with estimates.Profit at its movies division plunged by two-thirds due to

TOKYO :Japan's Sony on Wednesday said first-quarter profit tumbled due to weaker performances from its movies and financial businesses.Profit at its movies division plunged by two-thirds due to lower sales for television content as well as higher marketing costs after the company released more films in theatres.

Once a consumer electronics giant, the conglomerate has transformed itself to focus more on entertainment, developing movies, music and games. It is also a leading maker of image sensors. In May, Sony said it is examining a partial spin-off of its financial unit, which includes life insurance and banking, as it looks to invest in its entertainment businesses.

Sony has said it expects to sell 25 million PlayStation 5 consoles this financial year, in what would be a record for a PlayStation device, following the easing of supply chain snarls.Nintendo last week reported it has sold 18.5 million units of"The Legend of Zelda: Tears of the Kingdom" since its release in May, helping driving sales of its aging Switch console.

 

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