Sony Q1 profit tumbles as movie business disappoints

JAPAN’S Sony on Wednesday (Aug 9) 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 US$1.8 billion, in line with estimates.

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.

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Sony PlayStation 5 console sales pass 40 million

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Cumulative sales of the console have topped 40 million.

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 to drive sales of its ageing Switch console. REUTERS