TOKYO: Japan's Sony Corp warned its annual operating profit would drop, after two years of record highs, as its previously thriving gaming business slows and its PlayStation 4 console nears the end of its lifecycle.
The electronics and entertainment firm forecast profit for the year through March 2020 at 810 billion yen , down 9.4 percent from 894.2 billion yen a year prior.Sony's gaming business is forecast to post a profit of 280 billion yen, versus 311 billion yen a year earlier.The semiconductor business, which includes image sensors, is expected to report a profit of 145 billion yen, compared with 144 billion yen a year earlier.
Reuters reported Daniel Loeb's hedge fund Third Point LLC is building a stake in Sony again to push for changes that include shedding some businesses. "We believe recent reports of activist investors' interest and stake acquisition is likely to put significant, desirable and sustained pressure on Sony to act," Jefferies analyst Atul Goyal said in a note to clients last week.