Sony raises forecast despite lagging video-game business

Fiscal third-quarter profit at Japanese electronics and entertainment company Sony Corp. dipped to about half of what it was the previous year as its video game, networking and film businesses stumbled

Quarterly sales rose 3% to 2.46 trillion yen ($22.6 billion).

Both quarterly profit and sales were better than the FactSet forecasts.

Sony raised its profit forecast for the year through March 2020 to 590 billion yen ($5.4 billion), up from an earlier projection for 540 billion yen ($5 billion) profit.

That still trails the 916 billion yen Sony earned the previous fiscal year through March 2019.

Sales and profit from Sony's PlayStation 4 business have been faltering. The PlayStation 5 is set to go on sale later this year. An announcement of an upgrade for a machine that's been on sale several years tends to dampen sales of the current model.

Sony's image sensors, used in a wide variety of smartphones and digital cameras, continued to be in demand, while sales of its electronics products including smartphones and TVs declined, the company said.

An unfavorable exchange rate also hurt earnings, it said.

Higher sales from TV shows, including licensing revenue from the series “The Crown,” were offset by higher expenses.

Sony's music operations benefited from publishing sales from the acquisition of EMI as well as streaming revenue.

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