Sony FY2023 Financial Report: Record Image Sensor Sales, PlayStation Profits Up, Smartphone Business Shrinks

Sony Corporation has published its financial report for fiscal year 2023, which ended on March 31, 2024. The company posted strong performance across several of its core divisions, particularly in image sensors, gaming, and music streaming, while other sectors like smartphones and TVs faced continued challenges.

Imaging & Sensing Solutions (I&SS) Hits Record Sales

Sony’s Imaging & Sensing Solutions division, which produces image sensors for smartphones and other devices, recorded:

Revenue: JPY 1.799 trillion (↑ JPY 196 billion YoY)

Operating Income: JPY 261 billion (↑ JPY 67.6 billion YoY)

This performance marks a record high for the division, driven by:

Higher unit sales of smartphone image sensors

A stronger product mix, with more premium sensors sold

Favorable foreign exchange rates

Sony also warned of increasing manufacturing and R&D costs as it pushes ahead to adopt advanced semiconductor nodes to boost sensor density and performance.

PlayStation Division Grows Despite Hardware Dip

The Game & Network Services (G&NS) division saw major gains, fueled by:

Strong third-party game sales

Growth in PlayStation Plus subscriptions, especially higher-tier plans

Figures for the division:

Sales: JPY 4.670 trillion (↑ from JPY 4.267 trillion)

Operating Income: JPY 414 billion (↑ from JPY 290 billion)

However, PlayStation hardware sales declined, signaling a shift toward software and services revenue.

Smartphones Continue to Decline

Sony’s smartphone business, under the Entertainment, Technology & Services (ET&S) division, continues to struggle:

Mobile Communications Sales: JPY 279 billion (↓ from JPY 299 billion)

TV and smartphone unit sales were both down

While ET&S division sales dipped slightly to JPY 2.409 trillion, operating income edged up to JPY 190 billion.

Sony Pictures, Crunchyroll, and Streaming

Sony Pictures reported:

Stronger movie sales

TV production revenue down due to the WGA/SAG strikes

Online ad and subscription revenue also declined

However, Crunchyroll, Sony’s anime streaming service, reported a growth in paid subscribers and increased revenue. The company’s acquisition of Alamo Drafthouse Cinemas is also reportedly performing well.

Sony Music Streaming Drives Profit

Sony Music continues to thrive, thanks in large part to streaming:

Operating Income: JPY 357 billion (↑ from JPY 301 billion)

Streaming services remain the biggest revenue driver in this division

Summary

Division Sales Operating Income Highlights

I&SS (Image Sensors) ¥1.799T ¥261B Record highs, strong smartphone sensor demand

G&NS (PlayStation) ¥4.670T ¥414B Game sales & PS Plus strong, hardware down

ET&S (Electronics) ¥2.409T ¥190B Smartphone & TV sales declining

Sony Pictures - - Movie revenue up, Crunchyroll gains

Sony Music - ¥357B Streaming is key growth driver