Operating profit for the quarter ended June 30 rose to 280.1
billion yen ($2.57 billion) from 221.7 billion yen a year earlier, topping the
207.96 billion expected by 10 analysts, Refinitiv Eikon data showed.
It raised its profit forecast for the year through March
2022 to 980 billion yen from 930 billion, bringing it closer to the 1 billion
yen average estimate from 25 analysts.
Sony had expected growing pandemic demand for its devices
and content to wane as coronavirus lockdowns eased, but with fresh waves of
COVID-19 infections sweeping the world, restriction are still common.
A shortage of semiconductors, however, which is also
affecting the likes of Apple, means it cannot produce enough PlayStation games
consoles to meet demand.
Those supply-chain constraints could also affect production
of other consumer electronic devices, Chief Financial Officer Hiroki Totoki
told a news briefing after Sony's results.
"We use a lot of semiconductors and it is a source of
concern," Totoki said. "We can't become complacent," he added.
Sony in May said it expected to sell 14.8 million PS5 units
this fiscal year. Launched in core markets in November 2020, the console, which
sells for as much as $500, quickly sold out.
Sony has secured enough chips to achieve that production
target, Totoki said.
Sony sees the game console as a way to connect its
traditional consumer electronics with its growing content business by
encouraging online game downloads and sign-ups for subscription services.
As it streamlines its consumer electronics business, Sony is
beefing up its entertainment content and distribution business. In December it
agreed to buy AT&T Inc's animation business Crunchyroll with 3 million
subscribers worldwide.
In June it bought Housemarque, a Finnish game software
maker.
Sony also increasing movie offerings on streaming services
offered by Walt Disney Co and Netflix . as the pandemic delays movie theatre
releases.
Higher production costs, however, dented profitability, the
company said.
In May, the company indicated that it would continue to
expand its content business through acquisition when it said it would spend 2
trillion yen over the next three years on strategic investments, including a
push to expand subscribers to its gaming and entertainment services.
In its financial division, Sony posted a 16.8 billion yen
one-time loss resulting from an unauthorised fund transfer at a Bermuda
subsidiary, SA Reinsurance, in May.
The company said it reported the payment to local
authorities and was trying to recover the money.
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