Japan entertainment maker Sony ups forecasts as profits grow

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. giant / ˈdʒaɪ ənt / (n.) – a very large and successful organization
    Example:

    Our company has become a giant in the tech industry.


  2. console / ˈkɒn soʊl / (n.) – a device that’s made especially for playing video games
    Example:

    This game can be played on various gaming consoles.


  3. stellar / ˈstɛl ər / (adj.) – excellent
    Example:

    I’m so proud of my sister’s stellar performance in the school theater.


  4. humble beginnings / ˈhʌm bəl bɪˈgɪn ɪŋz / (idiom) – coming from a simple background or starting from a low rank or status
    Example:

    This mall started from humble beginnings. It began as a small shoe business.


  5. pillar / ˈpɪl ər / (n.) – an important part of something that helps support it
    Example:

    A country’s citizens are the pillars of its society.


Article

Read the text below.

Sony said its quarterly profit through September rose 24% on healthy demand for its music and movies, prompting the Japanese entertainment and electronics giant to raise its annual sales and profit forecasts.


Tokyo-based Sony’s July-September profit totaled 264 billion yen, or $1.8 billion, up from 213 billion yen in the previous year.


Entertainment companies have tended to thrive during the pandemic, as people stuck at home turned to games and movies. Sony makes PlayStation video game consoles and also offers online gaming.


Sony shipped 3.3 million PlayStation 5 game consoles during the second quarter of the April-March fiscal year.


Although Sony’s games business quarterly sales rose, its profit declined due to higher costs. Sony acquired U.S. video game developer Bungie during the quarter.


In music, top-selling recordings included Beyonce’s “Renaissance” and Harry Styles’ “Harry’s House.” Among its films, “Bullet Train,” starring Brad Pitt, earned $233 million globally.


Sony, which also makes camcorders and headphones, recorded higher quarterly sales and profits for its imaging and sensor operations.


Sony raised its sales forecast for the fiscal year through March 2023 to 11.6 trillion yen ($79 billion) from an earlier projection of 11.5 trillion yen ($78 billion). Sony’s sales totaled 9.9 trillion yen in the previous fiscal year.


Sony also raised its fiscal year profit forecast to 840 billion yen ($5.7 billion) from an earlier 800 billion yen ($5.4 billion). That’s lower than the 882 billion yen earned last year.


Sony is among Japan’s stellar brands, having brought the world the Walkman portable music player. But it had humble beginnings in the 1940s, when the nation was rebuilding from the ashes of World War II.


In more recent decades, Sony’s electronics division has faced tough competition from cheaper Asian rivals. Sales of TVs that were once pillars of Sony’s power, for instance, have declined.


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • Some companies that were profitable during the height of the pandemic have started to see losses this year. How do you think Sony is able to keep its profits high despite the easing of restrictions (ex. the company keeps innovating)? Discuss.
  • Sales of TVs that were once pillars of Sony’s power have declined. What do you think the company should do about this (ex. let go of the business, try to decrease prices)? Discuss.

Discussion B

  • Why do you think people are willing to spend a lot of money on entertainment? Discuss.
  • What should Sony do for artists who helped drive up the company’s sales like Beyonce, Harry Styles, and Brad Pitt? Discuss.