Sony on Wednesday said operating profit jumped 16% in the second quarter, as robust sales of image sensors offset a tumble in earnings from its gaming division.

The results prompted the Japanese entertainment and electronics firm, to lift its full-year profit outlook.

Demand for smartphone image sensors has grown as phone manufacturers introduce multiple-lens camera systems for high-end models.

Sony’s operating income came in at 279 billion yen ($2.6 billion) for the July-September quarter.

Profits for its sensor division surged 59% to 76.4 billion yen, a record for any quarter.

Gaming profits slid 28% to 90.6 billion yen as contributions from big gaming hits last year, such as “Marvel’s Spider-Man”, waned and sales for its mainstay PlayStation 4 console, now six years old, fell.

The company also said it had finalised plans to build a new image sensor plant in Nagasaki.

“Originally the plans were laid in response to the huge mobile phone market but going forward image sensors will be in demand in various areas related to the Internet of Things. They also eventually be used in applications related to autonomous driving,” CFO Hiroki Totoki told a briefing.

Sony also faces competition as Google and Apple Inc have entered the market for game streaming services. Sony this month slashed its annual subscription fee for its PlayStation Now cloud gaming service by 40% to $59.99.

Sony also lifted its annual profit forecast to 840 billion yen from an earlier estimate of 810 billion yen.