Sony has released its quarterly results reporting a profit of $205 million on revenues of $15.6 billion, in a quarter which proved to be of mixed fortunes.

Year-on-year both revenues and profits were down for the period, 11% and 74% respectively, though the team did decrease its exposure in the smartphone market, saw the negative impact of the foreign exchange market, as well as an earthquake which disrupted operations at one of its manufacturing plants. The last couple of quarters have been a challenging time for Sony, though the most recent set of results, while lower than last year, are encouraging.

Although the team reduced its focus on smartphones, it did turn around the business, demonstrating a small profit in a unit which was responsible for a $544 million over the 2015 financial year. Despite strong sales in Japan, the team has witnessed a challenging time in the European markets. As such, the forecast for smartphone sales has been decreased by 1 million.

ost reduction strategies for the unit are continuing, however a sluggish global smartphone market which has been plaguing the industry in recent months, seems to be hitting Sony harder than most. While this has reduced the total revenues of the business for the remainder of the year, on a positive note, the company unit is no longer losing money.

“Due to a reduction in mid-range smartphone unit sales and downsizing of the business of profitable geographical areas, sales for the quarter decreased 34% year-on-year,” said Kenichiro Yoshida, CFO. “Operating profitability improved by 23.3 billion yen and a 400 million yen operating profit was recorded. Despite the significant decrease in the sales, the earnings structure is improving because of improved profitability due to improved product mix reduction in operating cost and a decrease in restructuring charges.

The gaming division is where the team realized the majority of its success, accounting for roughly 75% of total profits, with sales increasing 14.5% year-on-year. Sony pinned the success down to increased PS4 game and console sales, as well as the cost reduction strategies which are being implemented company-wide.