Here Is Why Sony Will Invest More In Its Gaming Division

Sony Ps4

Monday proved to be a phenomenal day for Sony Corp. Shares of the company closed in the green in the Japanese stock exchange following bullish earnings estimates by numerous analysts. The shares closed 3% up in the Tokyo stock exchange marking a one year high.

So what is driving Sony’s stock price? Sony in recent times has revamped its strategy and is focusing more on gaming, camera chips and finance. The company on Monday estimates its operating profit for the fiscal year through March 2018 at $4.5 billion or 500 billion. The March 2017 operating profit came at 288.7 billion yen with a net income of 73.3 billion yen. Revenues similarly trickled by 6.2% to 7.6 trillion yen..Although the company’s estimates came in line with the consensus’ estimate of 507 billion yen there were some investment firms that felt highly of the stock. Moreover, the company’s financial performance in the latest period was hurt by earthquakes in Kyushu.

Goldman Sachs and Jefferies for instance felt that the company was moving on the right track and was destined to outperform its previous record of 525.7 billion yen in 1998. Gaming is considered to be the main profit driver for the company in the near future. Operating profits for the division rose 53% to 135.6 billion yen. As reported by Bloomberg, Goldman Sachs regarding the issue said that “We expect Sony to achieve its medium-term plan operating profit target for the first time in 10 years and believe it may surpass its record high.”

Sony’s flagship gaming product PS 4 is making quite a mark as well. Operating profit for the product came around 170 billion yen constituting 33% of the overall operating profit share for the company.  The online sales have also contributed heavily to the profitability. CFO of Sony, Kenichiro Yoshida lauded the company’s ability to reorganize effectively and achieve independence as individual businesses.

The future it seems is indeed bright for Sony