The five-year PlayStation 4 delivers more energy and profit growth for Sony Corps operations compared to Nintendo Co's much newer Switch.
Quarterly figures from the two video games rivals showed that Sony benefits from its very best console bike while Nintendo is struggling to expand the sale of its home or home machine. Sony increased its operating profit forecast once more, the performance last week showed, while Nintendo missed estimates and kept its outlook intact.
Gambling machines tend to follow a predictable cycle of growing growth, price cuts and retirement. But Sony breaks the pattern with a strong collection of game titles for the holiday season, including the home-made Spider-Man, who has set up PlayStation 4 for its best year ever. Without a new harvest of new game titles and only one scheduled for the holiday, Nintendo kept its forecast for 20 million Switch broadcasts unchanged during the fiscal year.
"PlayStation is doing well, Spiderman sold crazy in the second quarter, "says Kazunori Ito, an analyst at Morningstar Investment Services in Tokyo." On the surface, it's difficult to say that this was a good quarter for Nintendo. "
Investors have noted: Sony shares had increased by 15% this year before the performance, while Nintendo is down.
Basically, Sony takes a page out of Nintendo's playbook, churning out games made by his own studio; These titles are also more profitable. PS4 exclusive God of waR sold 3.1 million copies during its first three days in April, while last month Spiderman peaked it with a record 3.3 million copies over an even period of time. Nintendo expects a single title, the latest iteration of Super Smash Bros.. for Switch, to keep up for the last three months of the year.
"Sony uses first-party titles – in combination with PS Plus subscription services, which increases PS4 sales and prolongs its lifecycle," says Ito. "It will be painful for Nintendo without more first-party games."
Sonys December Quarter also looks strong in third-party games with analysts that require record sales of Red Dead Redemption II After that, this year's best reviewed game, according to Metacritic. Call of Duty: Black Ops Put a new PlayStation record for first-day digital sales, and other big titles coming in the quarter are Battlefield V, Fallout 76 and Just cause 4.
Sony's operating profit amounted to $ 239 billion ($ 2.1 billion) for the quarter in September, which estimated the analysts average estimate of 205 billion yen. More than a third of it came from the PlayStation division, where profits rose 65% from the previous year to 91 billion yen. Total revenue was 2.2 trillion yen.
For the full fiscal year, the Tokyo-based company increased its operating profit forecast to 870 billion yen from the previous forecast of 670 billion yen. Although the PlayStation division is doing well, it is also worth noting that the music business accounted for about half of this increase due to the acquisition of EMI Music Publishing of SEK 2.3 billion this year. The deal added a catalog of 2.1 million songs from Beyonce, Carole King and other artists. Sony's outlook for total sales increased slightly, to 8.7 trillion yen.
Nintendo's quarterly operating profit of 31 billion yen and a turnover of 221 billion yen missed both market forecasts. It is worrying if Nintendo can reach its Switch sales target. The Kyoto-based company maintained its full-year forecasts.
"It was a quiet quarter without many major releases from Nintendo," said Hideki Yasuda, senior analyst at Ace Research Institute. "Reaching their change goals really depends on the vacation quarter, especially the new one Super Smash Bros.. game."
The battle between Sony and Nintendo is also a test for the new business executives, who both took over a few months ago. Sonys Kenichiro Yoshida, the former CFO, who was promoted to the CEO in April, set a low bar as initially haunted investor. Nintendo's Shuntaro Furukawa represented more of a generational shift when he became president in April, and vowed to "fully develop the company".
"It's very important to continue putting out new software," Furukawa told reporters at a news conference after winning last week. – Bloomberg