Sony quarterly profit tumbles as movie business disappoints

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Sony’s first-quarter profit tumbled 31% as the conglomerate’s movie business disappoints

Trimmed movie division forecast due to strikeslogged a hefty drop in first-quarter profit, hurt in part by a weaker performance from its movie division but the entertainment giant remained hopeful about prospects for a record year for its PlayStation 5 console.

Profit at its movie 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.

Sales have so far been weaker than expected but the company said promotions starting in July are helping sales momentum.An employee of the consumer electronics retailer chain Bic Camera works at the promotion display of the Sony PlayStation 5 game console and its gaming software, ahead of the game console's official launch, in Tokyo, Japan November 10, 2020. REUTERS/Issei Kato/File Photo

 

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