TOKYO (Reuters) – Sony Corporation announced on Wednesday that it anticipates a modest 0.3% rise in operating profit to 1.28 trillion yen ($8.7 billion) for the fiscal year ending in March. This outlook factors in a projected 100 billion yen hit from U.S. trade tariffs related to former President Donald Trump’s policies.
The company emphasized that the tariff estimate does not yet include this week’s U.S.-China trade agreement, and that the actual impact could vary significantly depending on how trade relations evolve.
Shares Rebound Despite Initial Weakness
Sony’s shares recovered strongly, reversing an earlier more than 3% morning loss to rise over 2% in afternoon trading following the earnings announcement.
Sony’s Strategic Evolution Continues
Once a household name in electronics with devices like the Walkman, Sony has transformed into a diversified entertainment giant, with core operations spanning games, movies, music, and semiconductors.
President Hiroki Totoki has tightened his leadership grip, officially stepping into the CEO role last month.
As part of its realignment, Sony is preparing for a partial spin-off of its financial services unit, scheduled for October. The company will retain a stake of less than 20% as it sharpens its focus on entertainment.
Gaming Segment Faces Near-Term Pressure, But Longer-Term Optimism Persists
Sony shipped 2.8 million PlayStation 5 (PS5) units in Q4, a sharp 38% year-over-year decline.
This decline led to a 12.5% drop in gaming division profit during the same quarter. Sony cited higher inflation and exchange rate shifts as reasons for its recent PS5 price hikes in Europe and the UK.
Looking forward, Sony projects a 16% increase in profit from its games business, driven by stronger first-party title sales.
A highlight is the upcoming “Ghost of Yotei,” set to launch in October, following the successful “Ghost of Tsushima”, which has sold 13 million units on PlayStation and PC.
Though many in the industry are anticipating the next blockbuster, Take-Two Interactive’s delay of “Grand Theft Auto VI” to May 2026 could slow broader console momentum.
Full-Year Earnings Surpass Expectations
Sony reported that operating profit including financial services jumped 16% to 1.4 trillion yen, which beat analyst expectations for the fiscal year that ended in March.
($1 = 147.1900 yen)
