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

Sony has adjusted its FY2020 games segment sales revenue estimates by 100 billion yen ($945 million) due to strong software surge.

@DeekeTweak
Published Thu, Oct 29 2020 6:54 PM CDT   |   Updated Mon, Nov 2 2020 10:53 PM CST

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

Sony raises gaming earnings forecast by 5 million on software surge 9 | TweakTown.com
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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.

Sony raises gaming earnings forecast by $945 million on software surge 4 | TweakTown.com
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NEWS SOURCE:sony.net

Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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