Sony Group reported record-high sales for the first half of the fiscal year ending in September, driven by strong growth in the gaming and semiconductor businesses. According to the company’s report on Friday, favorable factors such as the yen’s lower-than-expected exchange rate contributed to a 36.5% increase in net profit for the first half of the fiscal year, reaching 570.13 billion yen (approximately USD 3.7 billion). Sales grew by 2.2% to 5.92 trillion yen, while operating profit surged 42.3% to 734.18 billion yen.

In the gaming and network services segment, sales rose by approximately 12% to 1.94 trillion yen, driven by the popularity of games like Astro Bot. This month, Sony launched the PlayStation 5 Pro with an upgraded graphics processor. Despite its high price of around 120,000 yen, President Hiroki Totoki stated that the pricing had no negative impact on PlayStation product sales. The company maintains its target of selling 18 million PlayStation 5 consoles for the fiscal year.

The semiconductor business also performed well, with sales increasing by 27% to 889.05 billion yen, attributed to rising smartphone image sensor sales. However, the film division’s profits declined due to Hollywood labor strikes.

The company expects the yen exchange rate to remain at 146 yen to the dollar and 160 yen to the euro in the second half of the fiscal year (ending in March), down from the 152.6 yen and 165.8 yen rates in the first half. Sony estimates that every 1 yen depreciation against the dollar would increase operating profit by 2 billion yen in the gaming, semiconductor, and electronics sectors, and every 1 yen depreciation against the euro would add 6.5 billion yen.

Sony raised its full-year sales forecast to 12.71 trillion yen from the previous 12.61 trillion yen but maintained its operating profit and net profit forecasts at 1.31 trillion yen and 980 billion yen, respectively.

Key Points:

• Sony’s sales in the first half of the fiscal year hit a record high, with net profit up 36.5%.
• Gaming and network services sales increased by 12%, reaching 1.94 trillion yen.
• Semiconductor business grew by 27%, reaching 889.05 billion yen.
• High-end pricing of the PS5 Pro had no impact on sales, with an 18 million unit sales target maintained for the fiscal year.
• Hollywood strikes affected the film division’s profits.
• Yen exchange rate fluctuations significantly impact corporate profits.
• Full-year sales forecast raised, with profit forecasts unchanged.