Sony raises gaming earnings forecast by $945 million on software surge

Sony has significantly boosted its FY2020 gaming sales revenue projections by nearly $1 billion as software sales continue to spike.

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In its latest Q2'20 earnings report, games titan Sony has raised its total fiscal year Games and Network Services sales earnings targets by 100 billion yen ($945 million as per Q2 exchange rates). Sony now expects gaming to earn 2.6 trillion yen ($24.57 billion) in FY2020, a rather sizable 35% increase over FY2019's performance.

This substantial increase will be driven by strong software sales, Sony predicts, as well as in-game purchases in titles like Genshin Impact, the latest free-to-play Chinese sensation that's now generated nearly $250 million in its first month.

Read Also: PlayStation 4 sales hit 113.8 million, Q2 sales dip 46% to 1.5 million

The PlayStation 5 is also expected to help drive software sales throughout FY2020 despite releasing in the latter two quarters (Q3-Q4). Hardware is expected to be down YoY due to declining PS4 sales and profit losses from per-console PS5 sales. Gaming segment operating profits are also expected to rise by 60 billion yen to 300 billion yen ($2.8 billion).

Sony likewise saw software growth throughout Q2'20. Software earned 297.061 billion yen ($2.8 billion) in Q2'20 and made up a whopping 60% of the company's Games and Network Services segment revenues.

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