Sony turns a profit thanks to PS4, but Xperia in trouble

Sony's first quarterly earnings of 2015 show a threefold net profit increase, to ¥82.4 billion (approximatrly $908 million), thanks mostly to the PlayStation 4.

However, while things certainly sound rosy, its Xperia smartphone division and Bravia TV range are hurting the Japanese tech giant more than ever.

While its PlayStation-branded gaming division saw a sales increase of 12.1 percent year on year, to ¥288.6 billion, its Xperia smartphone division lost 16.3 percent year on year, bringing in a total of ¥280.5 billion, down ¥33.8 billion. Its slowly failing Bravia TV business also dropped an unhealthy 17.6 percent year on year, bringing in ¥168.9 billion.

While its TV and smartphone business isn't doomed, it's clear that Sony's PlayStation division is saving the company. Or is it?

A PS4-powered future for Sony?

In Q3 of 2014, Sony's devices arm – responsible for sensors, semiconductors, batteries and so on – grew 38.6 percent. It ended the 2014 financial year with a further 23.9 percent growth and has grown by 35.1 percent so far in 2015. No other part of Sony's business is growing so quickly.

Naturally, Sony is doubling down in its devices business, pulling back investment in its Xperia phones, shrinking its television business and putting it all into increased production of imaging sensors.

This is undoubtedly a smart move, as Sony's camera sensors can be found in Apple's iPhone, Samsung's Galaxy phones and many others. If it can stay ahead of the game with its Exmor image-sensor technology, it shouldn't lose out on business to cheaper, inferior rival components.

Can the Xperia brand bring it back for Sony?

With Sony feeling the pressure from cheaper Asian rivals like Huawei, it's unlikely the Xperia range can claw back in to profit itself. However, it still brings in a sizeable amount of money each year – an amount similar to Sony's growing financial business – so it's hard to imagine it being jettisoned any time soon.

After Sony's terrible financial year in 2014, it made changes to how it handles its mobile business, shrinking its portfolio and reducing its marketing efforts. This move can be seen both in its company restructure and in its decreasing smartphone revenue – offset only by the savings it's making from a smaller marketing campaign.

Sony is hoping this financial year goes swimmingly and has predicted a slight decline in sales revenue, but a healthy ¥266 billion increase in net income due to smaller marketing overheads, a reduced workforce and the refocusing of its failing divisions.