Sony hikes profit outlook amid gaming segment strength

Investing.com -- Sony (NYSE: SONY) raised its operating profit forecast for the fiscal year ending in March after reporting strong performance from its gaming division.

The Japanese conglomerates lifted the profit outlook by 2% to 1.34 trillion yen ($8.70 billion), sending its shares 1.1% higher in Tokyo trading Thursday.

Sony said its profit in its gaming segment surged 37% in the October-December quarter, driven by increased sales from network services and lower hardware losses.

The company sold 9.5 million PlayStation 5 consoles during the quarter, up from 8.2 million units a year earlier. President Hiroki Totoki expressed optimism for the gaming business in the next fiscal year, supported by upcoming releases, including 'Grand Theft Auto VI', which Take-Two Interactive (NASDAQ: TTWO) Software (ETR:SOWGn) confirmed for an autumn launch.

Monthly active users on the PlayStation Network rose over 10% from the previous quarter, reaching 129 million.

Sony's group profit for the third quarter rose 1% year-on-year to 469.3 billion yen, surpassing analysts’ expectations. Operating profit in its hardware segment, which includes cameras, remained flat due to weaker television sales.

Sony also announced a share buyback plan of up to 30 million shares worth approximately 50 billion yen.

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