(Bloomberg) -- Sony Group Corp. revised up its full-year profit outlook after earnings beat estimates and the company had its best quarter of PlayStation 5 sales.

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The Tokyo-based company raised it operating profit forecast to ¥1.18 trillion ($9.2 billion) from ¥1.16 trillion for the fiscal year ending March. Sony credited the hike to its key gaming division benefiting from exchange-rate moves. It also increased its net income outlook by 3.6%, even as it now anticipates slightly lower sales than previously.

The company, which supplies camera sensors used in Apple Inc.’s iPhones, said operating profit was ¥429 billion in October-December, above the average analyst expectation of ¥369 billion. Sales were ¥3.4 trillion, the company said Thursday.

Sony sold 7.1 million PlayStation 5 consoles over the holiday period. The company saw PlayStation Plus user numbers rebound after they dipped in the earlier quarter, though they were flat on a yearly basis.

“Given the current climate where demand is deteriorating around the world, it’s amazing that Sony’s earnings are in line with expectations,“ said Morningstar Investment Service analyst Kazunori Ito. “How long Sony can keep up this momentum depends on how much hardware they can deliver. If they can continue this virtuous software-hardware cycle, which was not possible until last year, this could be a turning point.”

Chip supply issues that had bogged down PlayStation 5 console sales since its launch in 2020 have eased, the company said earlier this week. Improving supply of the console coincides with Sony’s release of God of War Ragnarok, the latest installment of the popular franchise.

The video game giant has said it will be able to better meet PlayStation demand this year and spur gamers to spend more on its network, as it seeks to counter diminishing game time as more players return to the office.

Sony lowered its sales outlook for the image sensor division, despite an improving product mix with a higher proportion of premium sensors. Demand for premium handsets remains a bright spot in an otherwise bleak market for smartphones worldwide. Solid orders for iPhone 14 Pro handsets, which use more of the Japanese company’s image sensors, have helped soften the blow. Sony is also developing high-margin display panels for Apple’s upcoming virtual-reality headsets, Bloomberg has reported.

The chip sector is struggling to resume growth amid a sharp downturn in consumer demand. Mass-market devices have been especially hard hit, with China leading the shortfall in purchases and even Apple’s entry-level iPhones affected. South Korea’s Samsung Electronics Co. warned earlier this week that the overall mobile market could contract in 2023 for the second year in a row.

Read more: Apple’s $3,000 Headset Boasts Eye and Hand Control, VR Calls

--With assistance from Peter Elstrom.

(Updates with more details from the earnings announcement)

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