Sony eyes a broader entertainment empire

The pandemic’s boost is fading for Sony, but the company’s longer term content-focused strategy still looks likely to pay off.

On Wednesday, the Japanese electronics-and-entertainment giant reported a record net profit for the fiscal year ended in March. The highest-ever earnings from its game division, helped by stay-at-home demand, was the major driver.

Sony has sold 7.8 million of its new PlayStation 5 console since its November release, outpacing its predecessor at the same stage. It could have sold even more if not for supply constraints due to a chip shortage. Operating profit at its game division fell 29% year-over-year last quarter. That was partly due to marketing expenses for the PS5 launch and because the console is sold below cost.