.png){kind=logo}
Sony reported a 45% increase in second-quarter operating profit on Thursday, beating market expectations. Nintendo, meanwhile, posted a 16% decline in operating profit, falling short of analyst forecasts.
Sony's operating profit reached 622.3 billion yen (USD 3.95 billion) for the quarter. Analysts had expected an average of 505 billion yen, according to LSEG data. The strong results led Sony to raise its full-year profit forecast by 9%. The company's entertainment business received support from the success of the movie Spider-Man: Brand New Day. Sony also raised its outlook for its music and chip divisions.
The PlayStation business is also looking towards the launch of Grand Theft Auto VI on November 19. The release is expected to support demand for Sony's gaming platform. However, higher memory chip prices are creating additional pressure. Sony sold 2.6 million PlayStation 5 consoles during the quarter. This was lower than the four million units sold during the same period last year.
"Sony is the bigger winner today and their success could have been even bigger if more PlayStation 5 Pro units were available," said Serkan Toto of Kantan Games.
Nintendo reported operating profit of 73.9 billion yen, down 16% from a year earlier. The result was below market expectations, while sales also declined. The company maintained its full-year profit forecast and expects to sell 16.5 million Switch 2 consoles. President Shuntaro Furukawa said Nintendo had secured enough memory supplies for its needs. He also ruled out another price increase after the company raised prices earlier this year.
Also Read: PlayStation VR2 Vanishes from Stores: Is Sony Ending Support?
Nintendo launched The Legend of Zelda: Ocarina of Time on Thursday, receiving positive reviews. However, analysts expect its biggest game releases to arrive in the next financial year. The wider memory chip shortage is creating challenges for technology companies as demand from artificial intelligence businesses grows.
Apple has also warned about pressure on profit margins during the holiday quarter. Sony shares closed 7% higher on Thursday ahead of the earnings announcement, reflecting growing investor interest in the company's results.