Sony reported a 7% decline in annual profits for the fiscal year 2023, primarily due to a decrease in its financial services division. Additionally, the company narrowly missed its projected unit sales target for its flagship PlayStation 5 gaming console for the full year.
In the March quarter, Sony exceeded LSEG consensus estimates with revenue reaching 3.5 trillion yen ($22.4 billion), marking a 14% increase year-over-year. However, operating profit came in slightly below expectations at 229.4 billion yen, though still reflecting a notable 57% jump from the previous year.
For the fiscal year 2023, Sony’s revenue amounted to 13 trillion yen, a 19% increase compared to the previous year. However, its operating profit for the full year declined by 7% year-over-year, totaling 1.2 trillion yen.
Sony fell short of its revised target for PlayStation 5 sales, reporting 20.8 million units sold in fiscal year 2023, slightly below the 21 million unit target announced in February. The company initially forecasted sales of 25 million units for the full year.
Looking ahead, Sony anticipates weaker sales with a projection of 18 million units of PS5 for the fiscal year ending March 2025, according to a company executive.
Following a management shakeup in its Sony Interactive Entertainment (SIE) gaming unit, Sony appointed Hideaki Nishino and Hermen Hulst as CEOs of the newly formed Platform Business Group and Studio Business Group, respectively.
The financial services segment weighed heavily on Sony’s profit, with operating income declining by 22.5% year-on-year to 173.6 billion yen in 2023. Additionally, the imaging and sensing solutions (I&SS) business experienced a 9% decrease in operating income compared to the previous year.
Sony forecasts a 5% decline in total group revenue for the current fiscal year, projecting sales of 12.3 trillion yen for the year ending March 2025. However, it anticipates a 5% increase in operating income, reaching 1.28 trillion yen, according to its consolidated results.
