Sony aims to sell 18 mn PlayStation 5 consoles this business year

Sony said it is planning to sell 18 million PlayStation 5 consoles this business year as robust game sales helped it more than double fourth-quarter operating profit.
Sony HQ
The Japanese tech company warned that it could be forced to revise that production target if any new lockdowns in China to control the spread of COVID-19 make component procurement difficult.

“What I can say now is that we can procure enough components for 18 million units,” Hiroki Totoki,  Chief Financial Officer of Sony, said at a press briefing.

Sony is using its popular PlayStation 5 games console to encourage online game downloads and sign-ups for subscription services. Last business year it sold 11.5 million units as it struggled like other consumer electronic companies with COVID 19 supply chain disruptions.

The company is expanding its software business, announcing in February the acquisition of Bungle, the creator of the Halo videogame for $3.6 billion.

Sony’s profit for the three months to March 31 rose to 138.6 billion yen ($1.06 billion) from 66.5 billion yen a year earlier.

Earnings at its gaming and network services business almost tripled to 55.6 billion yen. This business year Sony expects profits from the unit to fall 12 percent as it invests in game development and spends on acquisitions.

This business year, Sony forecast operating profit to fall to 1.16 trillion yen from 1.2 trillion yen.