PlayStation rides FX tailwinds, sales to record Q2 revenues

Sony's PlayStation division delivers record Q2 sales on the back of strong hardware, software, and FX tailwinds.

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Sony's latest Q2 FY2021 earnings report showed a marked increase in segment sales due to strong FX tailwinds. The exchange rate for Q2 was up 3.67% with a rate of $1 USD = 110.1 yen, a boost that benefited Sony tremendously.

The Games and Network Services (G&NS) segment, which includes the PlayStation brand, delivered record Q2 revenues of 645.43 billion yen ($5.862 billion) as compared to 506.63 billion yen ($4.77 billion) in Q2'20, which had a 106.2 yen-to-USD exchange rate. FX boosts represented 27% of the period's 138.8 billion yen year-over-year increase.

"FY21 Q2 sales increased a significant 27% year-on-year to 645.4 billion yen, primarily due to an increase in PlayStation 5 hardware sales and an increase in game software sales of third-party titles," Sony said in its presentation.

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The sales breakdown is dominated by software. Console hardware made up 160.63 billion yen ($1.458 billion), or nearly 25% of total Q2 sales. Software made up 53% of quarterly revenues, or 343 billion yen ($3.11 billion), and network services made 16%, or 100.44 billion yen ($912.3 million). The remainder was from peripherals like PlayStation VR and other accessories.

Games profits declined over last year due to rising costs of hardware production and the strategic profit loss associated with PlayStation 5 systems.

G&NS operating profit was at 82.67 billion yen ($740.94 million) for the period, as compared to 105.36 billion yen ($992.16 million) a year ago.

Sony's corporate shares have risen nearly 5% today to a five-year high as a result of the company's performance.

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