PlayStation 4 boosts bigger bottom line for Sony’s game division

Turns out that new things sometimes sell better than old things.

Sony found that out last quarter when its shiny PlayStation 4 fueled a 64.6 percent year-over-year increase in operating revenue for its gaming division, according to its latest financial report. Thanks to the new console, Sony Computer Entertainment generated $4.2 billion (due to the currency exchange rates through the quarter) in revenue.

“This significant increase year-on-year was primarily due to the launch of the PS4 in North America, Europe, and Latin America, as well as the favorable impact of foreign exchange rates,” reads Sony’s financial report. “[The increase was] partially offset by a significant decrease in unit sales of PlayStation 3 hardware.”

All of that combined to bring SCE an operating profit of $172 million, although the cost of producing the PlayStation 4 hardware dragged down those margins.

Overall, PlayStation 4 was a big help to Sony’s bottom line. The multimedia conglomerate reported a $257 million operating profit across all of its divisions and $22 billion in revenue. That’s an increase of 23.9 percent.

The company also saw a huge increase in smartphone sales.

These positive results did not stop Sony chief executive officer Kaz Hirai from making some major changes to the corporation’s core structure.

Sony revealed that it is selling its Vaio PC business. It is also spinning off its TV-production unit, and it will cut 5,000 jobs. Sony specified that it will lay off 1,500 Japanese employees and 3,500 employees outside of its home country.

With the gaming and smartphone businesses booming, Sony doesn’t want to drop resources into the shrinking PC market. As the world goes increasingly mobile, it’s trying to stay ahead of that curve.