Sony-Annual operating profit falls, PS5 sales below targets

Sony-Annual operating profit falls, PS5 sales below targets
Sony-Annual operating profit falls, PS5 sales below targets

TOKYO, May 14 (Reuters) – Japanese group Sony posted a 7% drop in its annual operating profit on Tuesday, penalized by the performance of its financial activities.

Profit for the fiscal year to the end of March was 1.2 trillion yen (7.11 billion euros), in line with the average estimate of 23 analysts surveyed by LSEG.

Sony said it sold 20.8 million PlayStation 5s throughout the year. The target was revised to 21 million units in February following weaker-than-expected sales during the holiday season.

The video game sector is facing a slowdown in demand. Xbox maker Microsoft last week decided to close studios including Tokyo-based Tango Gameworks as part of the latest cost-cutting measures.

Sony also announced in February the layoff of 900 employees in the video games sector and the closure of a studio in London.

The Japanese technology conglomerate plans a partial spin-off of its financial arm with a stock market listing in October 2025 in order to focus on its entertainment and microchip businesses.

Last week, Sony Pictures sent a letter expressing interest in acquiring Paramount alongside private equity firm Apollo, Reuters reported.

Such an operation would result in the creation of a Hollywood studio with approximately 20% of the North American box office. (Reporting by Sam Nussey; French version Mathias de Rozario, editing by Kate Entringer)

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