Sony upgrades full-year forecast, logs tripled quarterly profit under new CEO

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Net income also topped their prediction at 226.5 billion yen; the company raised its fiscal full-year forecast for net income by 20 billion yen to 500 billion yen.

We always knew that the PlayStation 4 had the potential to surpass the PlayStation 3 in sales, but we didn't know exactly when it would happen.

Profit jumped 24 percent in April-June to 195 billion yen ($1.75 billion). Operating profit rose from a year earlier to ¥83.5-billion.

As a result of strong momentum Sony has boosted their original hardware sales target by 1 million, and the company now expects to sell 17 million PS4 consoles in the fiscal year ending March 31, 2019.

The strong quarter should come as a relief to investors, who were caught flatfooted in April when new CEO Kenichiro Yoshida unveiled a dour full-year forecast, sending shares tumbling.

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"The Yoshida team got off to a flying start", said Hideki Yasuda, an analyst at Ace Research Institute.

Growth was even sharper, at 61 percent, when excluding the previous year's one-time gain from the sale of Sony's camera module unit and receipt of insurance payouts for quake damage.

Hirai spent the past six years digging the company out of deep financial trouble, leading aggressive restructuring and scrapping thousands of jobs while selling business units and assets. To that end, Sony has been expanding businesses promising stable revenue streams, such as online gaming services and music content libraries, while minimizing the impact of the volatile sales cycles of game consoles and other electronics gadgets. This is thanks to the 3.2 million units that the company managed to ship in the past quarter. This comes as no surprise considering the console is in its fifth year of sales.

Sony said separately it bought a 25.1 percent stake in Nile Acquisition LLC from the Estate of Michael Jackson for $287.5 million to make it a wholly owned unit.

For the year to March, Nintendo maintained optimistic annual targets, forecasting net profit of ¥165 billion and operating profit of ¥225 billion on sales of ¥1.2 trillion.

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