With a boost from its image sensors, Sony Group said on Tuesday that it expects operating profit to increase by 5% to 1.28 trillion yen ($8.2 billion) this fiscal year.
Sony, a significant provider of image sensors for smartphones, is predicted to see a 40% increase in operating profit due to increased sales and decreased expenses.
The Japanese corporation announced its plan to buy back up to 2.46% of its shares, valued at 250 billion yen. Additionally, it declared its intention to split its stock five for one.
Last year, it sold 20.8 million PlayStation 5 consoles, falling well short of its revised goal of 21 million units announced in February. This shortfall was due to lower-than-anticipated sales during the year-end shopping season.
This year, Sony’s gaming division reports a 7% increase in profitability. This is due to lower hardware losses from fewer console sales and increased sales from its PlayStation Plus subscription service.
Sony, acknowledged as the creator of the Walkman and MiniDisc, has evolved from an electronics producer into a multimedia powerhouse, including games, films, music, and chips.
To concentrate on its entertainment and semiconductor divisions, the Japanese tech conglomerate intends to partially spin off its banking unit and IPO it in October 2025.
The Xbox maker, Microsoft, announced last week that it was closing studios, including Tango Gameworks, located in Tokyo, as part of its latest cost-cutting efforts. The gaming industry has been impacted by a downturn.
In February, Sony announced that it was closing a facility in London and laying off 900 employees at its game division.
According to Reuters, Sony Pictures expressed interest in purchasing Paramount with the help of the private equity group Apollo in a letter issued last week.
A deal would give a strong Hollywood studio about 20 percent of the box office in North America.
Due to decreased profitability at its life insurance division, Sony reported a 7% decline in operational profit for the year that ended in March. The outcome matched projections.
Click here for more Business news.