The electronics business, long in difficulty, is becoming a growth driver for Sony. With a sales increase of 59 percent, the division was the biggest contributor to the Japanese group’s closing the last quarter with significant growth. The games business for the Playstation console, which grew strongly in Corona 2020, is performing at a high level, but is reaching its growth limits. Additionally, semiconductor bottlenecks are slowing sales of the new Playstation 5, which is still hard to come by more than six months after market launch.
Overall, Sony increased sales in the first fiscal quarter, which ended in late June, by 15% to the equivalent of around 17.4 billion euros. At around 1.6 billion euros, profit was nine percent higher than in the same quarter a year earlier. The games division remained the most important division with a turnover equivalent to 4.75 billion euros.
In the Corona Crisis, video games became even more popular. In the last quarter, Sony sold 2.3 million Playstation 5 devices, down from 3.3 million in the previous quarter and 4.5 million at Christmas. There is so much interest from gamers that the console has been hard to find since its launch in November. At the same time, Sony pointed out that the group initially makes a loss with every Playstation 5 sold, as the price is lower than production costs. Part of the industry’s business model is to accept losses when selling devices and then recover the money later through games.