Tokyo - Sony witnessed a 29% decline in operating profit during the July-September quarter, primarily due to underperformance in its image sensor and financial divisions. The reported profit for the quarter amounted to 263 billion yen ($1.74 billion), falling short of the 306 billion yen estimate provided by 10 analysts surveyed by LSEG.

The renowned Japanese tech conglomerate, once known for iconic household electronics like the Walkman, has evolved into an entertainment giant spanning games, movies, and music, while also holding a prominent position as an image sensor manufacturer. The chips division experienced a 38% profit slump, attributed to increased expenses and weaker sales of image sensors.

Despite the challenges, Sony maintained its sales target of 25 million PlayStation 5 (PS5) consoles for the fiscal year, anticipating a boost from the introduction of a new, slimmer version of the device. Sony President Hiroki Totoki acknowledged the ambitious nature of the sales target.

In the second quarter, Sony sold 4.9 million PS5 units, bringing the total sales for the fiscal year to 8.2 million units. The unexpected announcement of gaming chief Jim Ryan's departure in March and staff cuts at developer Bungie added to the industry's uncertainties. The release of "Marvel's Spider-Man 2" on October 20 brought positive momentum, becoming the fastest-selling PlayStation title ever, with five million units sold by the end of October.

While Nintendo has achieved success with its unique approach, Sony increased its full-year sales forecast for the games unit by nearly 5% to 190 billion yen. The company's movie division plans to co-finance and distribute a live-action adaptation of Nintendo's "Zelda" franchise, sparking speculation about potential future collaborations between the two major Japanese entertainment firms. Sony maintained its full-year operating profit projection at 1.17 trillion yen but raised sales and net income forecasts by 2% each.