By Kosaku Narioka
Sony Group Corp. shares fell sharply Monday morning after the Japanese electronics and entertainment company cut its fiscal-year net profit forecast, citing weaker game earnings.
The shares were recently 6.2% lower at 10,970 yen after falling as much as 7.0% earlier.
Sony said Friday after market close that it expects net profit to drop 9.3% to Y800.00 billion ($6.00 billion) for the fiscal year ending March 2023, compared with its previous view of a 5.9% fall, while projecting revenue to increase 16% to Y11.500 trillion.
First-quarter operating profit from its game business fell from a year earlier due to slower sales of game software and higher costs of game development.
The company lowered its fiscal-year operating-profit forecast for its game business to Y255.0 billion, down from the previous view of Y305.0 billion.
The Topix subindex for electronics makers was recently down 1.0% while the Nikkei Stock Average was 0.1% higher.
Write to Kosaku Narioka at email@example.com