Japanese tech giant Sony has announced record annual profits, thanks to a surge in demand for semiconductors and the successful launch of its latest gaming console, the PlayStation 5. The company’s consolidated operating profit for the fiscal year ending March 31, 2023, came in at 2.4 trillion yen ($21.8 billion), up 26.3% from the previous year and beating analysts’ estimates.

The semiconductor business played a key role in driving Sony’s earnings, with the company’s image sensor division benefiting from the boom in demand for smartphones and other digital devices that require high-quality camera technology. The company’s gaming division, which includes the PlayStation brand, also delivered impressive results, posting its highest-ever annual revenue of 2.9 trillion yen ($26.4 billion).

Sales of the PlayStation 5, which was launched in November 2020, were a major contributor to the gaming division’s success. The console has been in high demand, with Sony struggling to keep up with orders due to supply chain issues caused by the COVID-19 pandemic. Nevertheless, the company sold over 10 million units of the PlayStation 5 in its first five months on the market, making it the fastest-selling console in Sony’s history.

In addition to the PlayStation 5, Sony’s gaming division also benefited from strong sales of its software titles, including the critically acclaimed action-adventure game “Ghost of Tsushima” and the role-playing game “Demon’s Souls.” The company plans to release more exclusive titles for the PlayStation 5 in the coming months, which should help sustain the console’s momentum.

Overall, Sony’s strong performance in fiscal year 2022 reflects the company’s ability to navigate a challenging business environment, marked by supply chain disruptions and the ongoing impact of the COVID-19 pandemic. With its semiconductor and gaming businesses firing on all cylinders, Sony is well-positioned to continue delivering strong results in the years ahead.