TOKYO – Sony expects record highest net profit for the year ending March as demand for pandemics strengthens its core game industry.
The company revised its outlook on Wednesday for the current fiscal year. Sony now forecasts net profit to jump 86% to 1.085 trillion yen ($ 10 billion), surpassing its record of 916 billion yen posted during the year to end in March 2019.
The strong performance is supported by a 7% jump in revenue to 8.8 trillion yen and an 11% increase in operating profit to 940 billion yen.
This marks Sony’s second upward revision this year. Earlier, the company said it expected annual net profit to rise 37% to 800 billion yen.
The conglomerate’s membership-based game services have become very popular among gamers, especially PlayStation Plus, which draws a monthly revenue stream for its online multiplayer games. The chronic pandemic has helped support the growth, as many people have chosen to stay at home, stimulating demand for games and other home entertainment.
The release of its latest PlayStation 5 console in November boosted game sales. The spread has led to an increase in marketing and other related costs, but these have been offset by overall growth in the game industry.
The engaging anime film “Demon Slayer,” co-produced by Sony’s music unit, helped drive sales. The film was released in theaters across Japan in October and has become the highest grossing film in the country ever.