Million PlayStation 4 Units Have Been Shipped Worldwide

Nichole Vega
August 1, 2017

Operating income decreased 26.3 billion yen year-on-year to 17.7 billion yen.

Looking ahead, for fiscal 2018, the company continues to expect attributable net income of 255 billion yen, and operating income of 500 billion yen. Thanks to its music and games divisions, the Japanese company boasted its best-ever Q1 report.

It does not necessarily translate into units purchased by consumers.

Sony Music also reported their top 10 best-selling albums for the first quarter ending June 30, 2017. Lower hardware prices wasn't the only contributing factor here, however, as Sony also noted "the absence of the significant contribution of a highly profitable first-party software title" compared to the same period previous year.

Operating income in the same quarter of the previous fiscal year included a 20.3 billion yen impairment charge against long-lived assets resulting from the termination of development and manufacturing of certain high-functionality camera modules for external sale, as well as net charges of 13.6 billion yen in expenses resulting from the 2016 Kumamoto Earthquakes, both in the Semiconductors segment.

- The recorded music operations of Sony Music Entertainment and Sony Music Japan saw revenue grow 11.3 percent to $898.5 million (99.822 billion yen) from the prior year's first quarter total of $829.84 million (89.71 billion yen). TVs had in the past been one of Sony's largest liabilities, losing the company 800 billion yen in the 10 years through fiscal 2013.

On a constant currency basis, sales increased 14 percent. During the current quarter, restructuring charges, net, increased 0.7 billion yen year-on-year to 2.4 billion yen.

The decline in earnings happened due to the price cut on hardware and the negative impact of the exchange rate between yen and dollar.

The profit surge comes mainly as Sony's image sensor business returned to stability having recovered from quake damage sustained a year ago, the company said. For Semiconductors, sales are expected to be lower than the earlier forecast primarily due to lower-than-expected image sensor unit sales for mobile products.

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