What's going on?
Sony reported record full-year sales on Tuesday, after the entertainment giant came to the eye-opening realization that three Spider-Men are more profitable than one.
What does this mean?
Somewhere in this sprawling multiverse, there’s another Finimize reporting that Sony is in disarray after its latest Spider-Man movie unceremoniously flopped. This is not that universe, with Spider-Man: No Way Home having become one of the highest-grossing movies of all time. Throw in a long list of licensing agreements with streaming services, and Sony’s movie segment brought down the house last quarter.
Sony’s music and anime businesses performed well too, and there was big demand for its smartphone camera sensors. Put it all together, and the company posted its best-ever full-year sales – albeit with the caveat that the company’s profit came in 14% lower than the year before. It said it was expecting another drop of 6% this year too, which does make you wonder if Hotel Transylvania: Transformania was a shrewd investment.
Why should I care?
Zooming in: Microsoft might not be on top for long.
Sales of Sony’s PlayStation 5 faltered last year, but only because it’s still nearly impossible to get hold of one: the company doesn’t have enough of the parts it needs to meet demand. That’s put its sales well behind those of Microsoft’s Xbox models, which made record revenue in March. Sony, then, has been working hard to find new suppliers and design shortcuts, which it’s confident will help it get production back on track in next to no time.
The bigger picture: Sony’s built for this.
Sony makes a significant portion of its sales internationally, which is a fortunate position for a Japanese company to be in right now. See, the yen is at a 20-year low against the US dollar, largely because America’s rising interest rates (and Japan’s rock-bottom ones) have made US assets more appealing to international investors and savers. So when Sony converts its foreign revenue back into Japanese yen, it’ll be worth a lot more than it would’ve been otherwise.