TOKYO, July 29(ABC): Sony trimmed its annual net profit forecast on Friday, partly due to acquisition expenses from the purchase of US game studio Bungie, creator of hits like “Halo” and “Destiny”.
The PlayStation maker announced in February it would buy Bungie for $3.6 billion, weeks after rival Microsoft unveiled a landmark pact to acquire “Call of Duty” maker Activision Blizzard.
Microsoft says its massive merger, valued at around $69 billion, will make it the third-largest gaming company by revenue, behind Tencent and Sony — a major shift in the booming gaming world.
Sony Group now predicts net profit for 2022-23 will total 800 billion yen ($6 billion), down from its previous estimate of 830 billion yen. Higher-than-expected acquisition expenses are “mainly due to the acquisition of Bungie, Inc. being completed earlier than the assumed timing”, it said.
Lower sales of games by non-house developers will likely dent its overall sales figures this financial year, the Japanese conglomerate said, but this would be “partially offset” by a weaker yen. Favourable exchange rates also boosted Sony’s movie segment, chief financial officer Hiroki Totoki told reporters.
Customer traffic at US theatres appears to be returning to pre-pandemic levels, and Sony Pictures is looking to score another box-office win after the runaway success of “Spider-Man: No Way Home”. “We have high hopes for ‘Bullet Train’ featuring Brad Pitt,” Totoki said.