Sony raises gaming and network services sales forecast for fiscal 2024 on favorable yen exchange rate in Q1

Sony has released its Q1 2024 earnings report, which shows the company’s performance in the first quarter of the fiscal year. In the reports, Sony notes a decline in software sales, but has raised its Game & Network Services FY24 sales forecast due to favorable yen exchange rates in Q1.

On August 7, 2024, Sony released its Q1 2024 earnings report. In the Consolidated Financial presentation, Sony raised its fiscal year 2024 guidance by 3 percent for the Game & Network Services segment. This $120 billion upward estimate is based on yen exchange rates. Sony is assuming the yen will reach an exchange rate of 148 yen per USD in Q2-Q4. Last year, the yen traded at an average of 144.4 actual. It is also important to note that G&NS sales in Q1 2024 increased by 12 percent year-over-year.

Sony reported these results just days after the Nikkei suffered its worst decline since 1987, making the assumptions behind the currency even more impressive.

Bloomberg notes that Bank of Japan Deputy Governor Shinichi Uchida has pledged to refrain from raising interest rates during this period of market volatility. “I believe the bank must maintain monetary easing at the current interest rate for now, given that developments in financial and capital markets at home and abroad are extremely volatile,” Shinichi Uchida said.

This is a unique position for Sony, with hardware and software sales declining yet guidance still rising. Keep this on Shacknews for more on other companies that have released Q1 2024 financial results.