On May 18, according to media reports, Sony is considering a spin-off of its Sony Financial Group within three years to provide financial support for its gaming and electronics business, which could change the $3.7 billion privatization agreement reached between the two sides in 2020.。

Today, according to Sony's presentation materials at the strategy briefing, the company will evaluate Sony Financial Group's spin-off plan this fiscal year, with the goal of retaining less than 20% of its shares and promoting its successful listing on the Japan Stock Exchange.。

At the briefing, Hiroki Totoki, Sony's president and chief operating officer, who was just appointed in February, said that Sony's image sensor and entertainment business needs greater investment in the future, while the company also needs a strong financial services sinking foundation.。As a result, the company is considering a split listing that would both retain the Sony name in the segment and give it the ability to raise capital independently.。

Sony Finance, which was founded in 2004, now runs Sony Bank, one of the few online-only banks in Japan.。Sony had previously placed high hopes on the financial division that it would contribute most of Sony's operating profits in the future。But for now, Sony has shifted its focus to its entertainment business.。

On April 28, Sony announced its annual report for fiscal year 2022, covering the statistical period from April 1, 2022 to March 31, 2023.。Data show that Sony's total revenue during the reporting period reached 1,1539.8 billion yen (about 5,852 yuan.3.3 billion yuan), up 16% year-on-year.。In addition, in fiscal 2022, Sony's annual shipments of PlayStation 5 game consoles reached 19.1 million units, exceeding the target of 18 million units, an increase of 7.6 million units over the previous fiscal year, and the cumulative global shipments have now reached 38.4 million units.。In the first quarter of this year, PlayStation 5 shipments hit a new high, coming to a staggering 6.3 million units, breaking the previous record for all PlayStation, Xbox and Nintendo consoles.。

Despite the positive results, the company's earnings forecast for fiscal 2023 still looks relatively conservative。The Tokyo-based company said it expects operating profit of 1 for the fiscal year to March 2024..17 trillion yen ($8.7 billion), below analysts' average estimate of 1.27 trillion yen。Much of the blame lies with the PlayStation division, where Sony's guidance was below consensus.。

Last month, the company issued a warning that it expected the number of games sold by the PlayStation Studios team to decrease, and the decline in global consumer spending will have an impact on its electronics and entertainment business.。At the time, Sony's chief financial officer turned ten-hour Hiroki said the smartphone market was also unlikely to rebound before next year.。

Similarly, Sony's old rival Nintendo also lowered sales of its flagship Switch in its latest annual report, which has recorded two consecutive fiscal years of decline due to supply shortages of components such as semiconductors.。On May 12, the company just released its new much-watched "Zelda" IP: "The Legend of Zelda: Tears of the Kingdom."。

Regarding Sony Financial Group's plan to spin off and go public, Macquarie analyst Damian (Damian Thong) said that we have always believed that Sony's previous plan to privatize Sony Financial is not very consistent with the entertainment empire Sony wants to build in the future.。Sony's strategic focus should be on its entertainment business and seeking to maximize its IP value across games, movies and music.。

On May 25, after two years, Sony will once again host the PlayStation Showcase event。It is reported that the show will focus on the world's top studios are developing PS5 and PS VR2 games, including players look forward to "Marvel Spider-Man 2," "Wolverine," "Soul of the Island 2," "Silent Hill 2" and other works.。

In addition, it has been revealed that Sony is preparing a new PS5 Pro game console and expects the company to reveal more details at the show.。

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