Sony releases its financial results for the first quarter of fiscal year 2016 and surprisingly, the numbers are low compared to Q1 of fiscal year 2015.
“Sales decreased by 10.8% compared to the same quarter of the previous fiscal year (“year-on-year”) to 1,613.2 billion yen (15,662 million U.S. dollars). This significant decrease was mainly due to the impact of foreign exchange rates, a decrease in Mobile Communications (“MC”) segment sales reflecting a significant decrease in smartphone unit sales, a decrease in revenues in the Financial Services segment due to the deterioration in investment performance in the separate account at Sony Life Insurance Co., Ltd. (“Sony Life”), as well as decreases in sales in the Semiconductors and Imaging Products & Solutions (“IP&S”) segments due to the impact of the earthquakes in the Kumamoto region in 2016 (“2016 Kumamoto Earthquakes”). This decrease was partially offset by an increase in Game & Network Services (“G&NS”) segment sales reflecting increases in PlayStation 4 (“PS4”) software sales. On a constant currency basis, sales decreased 3% year-on-year. For further details about the impact of foreign exchange rate fluctuations on sales and operating income (loss).”
“Operating income decreased 40.7 billion yen year-on-year to 56.2 billion yen (546 million U.S. dollars). This significant decrease was mainly due to the deterioration of operating results in the Semiconductors segment, partially offset by an improvement in the Game & Network Services and MC segments.”
But as expected, gaming department has seen it growth, especially in PS4 side as Sony shipped 43.5 million console units as of June 30, 2016. That’s 3.5 million units between April 1st and June 30th.
As for the sales forecast, Sony is expected to ship 20 million PS4 units for the whole fiscal year making it a total of 60 million units shipped by the end of fiscal year.
Sony also has high expectations on first party games such as Gran Turismo Sport and The Last Guardian. Pre-order for Playstation VR are doing “quite well”according to Chief Financial Officer Kenichiro Yoshida.