Sony ekes out 1% second quarter profit rise as PS5 costs squeeze margins

Japan’s Sony Group Corp on Thursday squeezed out a surprise 1% rise in operating profit for its second quarter though costs from growing sales of its PlayStation 5 (PS5) console pressed on margins.

Weaker profitability in the key games segment could also not stop the group hiking its full-year operating forecast by 6% to 1 trillion yen ($8.81 billion) from its August forecast, driven by expected profit growth in movies, music and electronics.

Sony said it has sold a cumulative 13.4 million units PS5 units since launch last November. That contributed to a 27% year-on-year jump in sales at its gaming unit, though profit was less robust as the conglomerate sold hardware below cost.