Although the global outlook for COVID-19 is still uncertain, it relies on the excellent performance of black technology electronic products such as SONY’s high-end high-end screen TV, the sale and sale of the new generation of PS5 game console, the sale of game content and PS Plus registered members increased; animation business represented by “ghost killing edge: unlimited train” film increased significantly; online entertainment business such as streaming media music and mobile games increased, etc., and Sony Group’s games, electronics, music, film and television and financial businesses achieved business profit growth in the third quarter.
Sony continued to raise its forecast for the annual performance figures, and it is expected that Sony Group will achieve sales revenue of 880 billion yen in fy2020, and 850billion yen in the previous quarter; operating profit is also expected to rise from y700billion in the second quarter to 94billion yen.
Sony’s game and network services business (GNs) grew more strongly in the third quarter, recording sales revenue of 883.2 billion yen, up 40% from last year. Operating profit increased 26.7 billion yen to JPY 802 billion year on year. Hardware sales were increased mainly due to the launch of playstation5 (ps5) game consoles, and increased sales of game software and Playstation plus (PS plus) subscription services. The reduction mainly comes from the promotion and routine management costs related to the release of ps5 hosts, and the strategic pricing of ps5 lower than the cost.
Game related business in financial report
·Sony’s hardware shipments this quarter were 5.9 million. Among them, the sales volume of PS4 is 1.4 million, and the sales volume of ps5 is 4.5 million
·In the quarter, ps4ps5 platform sold 103.7 million games, of which 18.4 million were first-party games
·The sales volume of the third quarter 53 comes from the digital download version, and the digital version sales account for 63% in the whole year 2020
·”Manway spider man: Miles” sold 4.1 million, and manway spider man sold 13.2 million
·As of December 31, 2020, 4.5 million ps5 hosts were sold (the volume of PS4 in the same quarter of 2013 reached 4.5 million)
·The number of active PSN users reached 114million
·The total number of paid users for Playstation plus increased from 38.8 million in the same period last year to 47.4 million today
·The volume of PS4 in the third quarter was only 1.4 million, lower than that of last year’s 6 million, and the total sales volume of PS4 is 151 million
·Ps5 console sales are currently in a loss (costs are higher than the price due to transportation, etc.), but Sony’s operating revenue has increased by 50% year on year. The reason is its lucrative sales of software and network services, a record quarter for Sony’s online sales (PS, digital games, DLC, etc.)
Income from other business parts
Music business saw a good third quarter rise in the business area, recording sales revenue of 264.5 billion yen, an increase of 22 over the same period last year, with operating profit of 59.7 billion yen, a year-on-year increase of 23.4 billion yen. The main benefits are the increase of sales of visual media and platforms, the growth of animation business represented by “ghost killing edge: unlimited train” film, excellent performance of mobile game business, and the increase of streaming media revenue of music record companies and music distribution companies.
The sales revenue of film and television business (Pictures) decreased by 44 billion 800 million yen to 191 billion 200 million yen compared with that of the previous year, mainly due to the impact of COVID-19 and the reduction of movie theaters. However, the decrease in cinema marketing expenses, TV program authorization and increase of family entertainment income (from previous years and works from film and television resource base) offset the negative impact, and the operating profit rose by 16.8 billion yen to 22.2 billion yen year on year.
The sales revenue of electronic products and solutions business (EPS) was basically the same year-on-year, reaching 649billion yen. The increase of sales revenue brought by TV product model optimization is in line with the decrease of mobile phone sales and negative exchange rate impact. Affected by the optimization of TV and digital image product model combination and the decrease of mobile business operation cost, the operating profit increased by 25.4 billion yen to 105.8 billion yen year on year.
The sales revenue of the imaging and sensing solutions business (ISS) decreased by 1 to 26.9 billion yen year on year, mainly due to the decrease in sales revenue of image sensors for mobile products. Operating profit decreased to y50.4 billion year on year due to the increase in depreciation, amortization and R & D expenses and the decrease of sales revenue.
Financial services revenue increased by 4 to 42.3 billion yen year on year, mainly due to the increase in Sony life’s income and the positive impact of the financial services business becoming a wholly-owned subsidiary of Sony Group in the fourth quarter of the previous fiscal year. Thanks to the significant improvement of Sony life’s operating profit, the operating profit of financial services business increased by 14 billion yen to 46.6 billion yen year on year.