SONY KEEPS PROFIT OUTLOOK AS PS4 SOFTWARE SALES SURGE

Japan’s Sony Corp said a strong yen and slower smartphone sales would weigh on its cashgenerating image sensor business this year, but the popularity of its Play Station 4 videogame should help it reach its profit target.

Damage from earthquakes forced the electronics giant to partially halt its image sensor production in April, but Sony said on Friday that the damage had been less than previously expected.

It reiterated confidence in the long- term prospects of the image sensor business, used in smartphone cameras and other appliances, and pledged to diversify clients to reduce its reliance on the stagnating smartphone market.

“We have not changed our view that image sensors would be a medium and long- term profit driver,” chief financial officer Kenichiro Yoshida told reporters at an earnings briefing.

Mr Yoshida said Sony has been in talks with various automakers and auto parts makers for development projects. Even though the company is a latecomer to the automotive sensor market, those projects “are expected to generate substantial sales in 2019 or 2020,” he said.

For the current year through March 2017, the image sensor business will be a drag, limiting Sony’s overall operating profit to 300 billion yen ($ 2.9 billion), or a 2 percent rise.

Sony said operating profit fell 42 per cent in April-June from a year earlier to 56.2 billion yen, as its chips division swung to a loss of 43.5 billion yen.

The loss, however, was offset by strong demand for Playstation 4 videogame software.