Sony Raises Earning Estimates On Back of PlayStation Division, But Still Seeing Red
The PlayStation 4 is the best-selling current-gen console, and that performance helped Sony beat its internal estimates for 2014.
Today the Japanese manufacturer raised its profit forecasts for the fiscal year ending March 31. Sony originally thought it would hit an operating profit of 20 billion yen. In the revised statement, Sony thinks that number will be closer to 68 billion yen ($569 million).
That said, the projected net losses are still staggering. Sony previously anticipated that number to be 170 billion yen. In the new projections that number is down to 126 billion yen ($1.05 billion). The bulk of these losses are due to struggling consumer electronics division, which has undergone drastic restructuring, including the closure of the laptop division and the spin-off of the television business. The costs of beefing up security following the cyberattacks the company faced last year likely also factor into the equation.
Despite the big losses, Hirai's restructuring has helped Sony boost its stock value. According to the Wall Street Journal, its shares have risen 94 percent over the last year.
We'll have a better understanding of how Sony beat its projections when the full report is released April 30.
It's nice to see the PlayStation division take a leadership position in Sony, but CEO Kazuo Hirai clearly still has work to do with the consumer electronics division.