Sony Earnings: Uncertainty Over PlayStation Business Weighs on Stock Price

Sony Group’s December quarter operating income of JPY 463 billion exceeded our expectation of JPY 430 billion, mainly due to the improvement in net gains from market fluctuations in the financial services segment, which are difficult to predict. Aside from this one-time factor, we believe Sony’s operating profit was largely in line with our expectations, with the lower-than-expected profitability in the game & network services segment largely offset by margin recovery in the imaging & sensing solutions segment.