Momentum from the pandemic is fading for Sony SONY, -1.41%, but the company’s long-term content-focused strategy still seems to pay off. On Wednesday, the Japanese electronics and entertainment giant reported a record net profit for the fiscal year that ended in March. Higher earnings from its gaming division, helped by stay-at-home demand, were the main driver.
Sony has sold 7.8 million of its new PlayStation 5 console since its launch in November, beating its predecessor at the same stage. It could have sold even more if it weren’t for supply limitations due to chip shortages. Operating profit at its gaming division fell nearly 30% year-over-year last quarter. That was partly due to marketing expenses for the PS5 launch as the console is selling below cost. But the momentum of the Covid-19 pandemic could end soon. Sony issued a cautious outlook, forecasting a decline in operating income this fiscal year, although the company has generally been conservative in its guidance, according to Jefferies. An expanded version of this article appears on WSJ.com. WSJ.com Popular Stories: