**Sony’s Profit Slips 17% Amid Revenue Concerns from Movie Strikes**
Sony Corp. reported a 17% decline in profit for the April-June quarter compared to the same period last year. The Japanese electronics and entertainment company cited concerns over revenue damage caused by strikes in the movie sector.
**Profit and Sales Figures**
In the fiscal first quarter, Sony’s profit totaled 217 billion yen ($1.5 billion), down from 261 billion yen in the previous year. On the other hand, quarterly sales rose by 33% to 2.96 trillion yen ($21 billion). This growth can be attributed to increased sales in games and network services, the music business, financial services, and imaging solutions.
**Impact of Exchange Rates**
One factor that contributed to Sony’s results was a favorable exchange rate. The weakening yen, trading at approximately 143 yen to the dollar, benefited Japanese exporters like Sony.
**Revenue Challenges in the Movies Segment**
Sony anticipated that its revenue in the movies segment would be affected by the strikes conducted by the Writers Guild of America (WGA) and the Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA). The strikes resulted in delays in release dates of movies and deliveries of TV series.
**Success in the Gaming Industry**
During the quarter ending in June, Sony shipped 3.3 million PlayStation 5 video game consoles. Additionally, Sony’s online gaming network saw a significant increase in active users, reaching an estimated 108 million users, up by 5 million from the previous year.
**Top-Earning Music Releases**
Some of Sony’s recent successful music releases include the “SOS” album by SZA, Miley Cyrus’ “Endless Summer Vacation,” and “Harry’s House” by Harry Styles.
**Revised Profit Forecast**
Sony raised its full-year profit forecast to 860 billion yen ($6 billion), surpassing its earlier projection of 840 billion yen ($5.8 billion). However, this revised forecast remains lower than the previous year’s profit of 1 trillion yen.
By focusing on diversifying its revenue streams across various sectors such as gaming, music, and imaging solutions, Sony aims to mitigate potential risks in the future.