Sony reports 7% drop in annual profit as PlayStation business weakens

Sony on Tuesday reported a 7% drop in annual profits in the fiscal year 2023 amid weakness in its gaming division.

Here's how Sony did in the March quarter versus LSEG consensus estimates:

• Revenue: 3.5 trillion yen ($22.4 billion) versus 2.89 trillion yen expected. That represents a 14% increase year-over-year — but the first drop since Sony's 2020 September quarter, according to LSEG data.
• Operating profit: 229.4 billion yen versus 236.81 billion yen expected. That marks a 57% jump year-over-year.

The Japanese gaming giant reported 2023 revenue of 13 trillion, an increase of 19% year-over-year.

Sony's operating profit for the full year, though, came in at 1.2 trillion, down 7% year-over-year.

The drop in quarterly revenue comes after Sony in February cut its forecast for its flagship PlayStation 5 console. The firm at the time said it expected to sell 21 million units of the PS5 in the fiscal year, down from an earlier forecast of 25 million units.

This breaking news story is being updated.