Sony has projected a slight increase in its operating profit for the financial year ending in March, with expectations of a 0.3% rise to 1.28 trillion yen ($8.7 billion). This forecast accounts for a 100 billion yen hit from the ongoing trade tensions triggered by U.S. President Donald Trump’s trade war. However, Sony noted that the estimated impact does not reflect the recent trade deal between the United States and China, and the actual effects may differ significantly.
Following the release of its results, Sony’s shares reversed a 3% drop in the morning session, climbing over 2% in afternoon trading. The company has transformed significantly from its origins as a household electronics manufacturer, such as with the Walkman, into a global entertainment powerhouse, covering areas including gaming, movies, music, and semiconductor chips.
President Hiroki Totoki, who assumed the CEO role last month, has consolidated his leadership within the company. Sony is preparing for a partial spin-off of its financial services unit as part of its ongoing strategic shift toward focusing more on entertainment. This spin-off, in which Sony will retain less than 20% ownership, is set to take place in October.
The gaming division, however, faced challenges in the fourth quarter, with sales of PlayStation 5 (PS5) units falling by 38% year-on-year to 2.8 million units. The gaming unit’s operating profit also dropped by 12.5% during the same period. In response to inflation and exchange rate fluctuations, Sony raised PS5 prices in Europe and Britain last month.
Despite these setbacks, Sony remains optimistic about the gaming business, forecasting a 16% increase in profit this year due to anticipated higher sales of first-party games. The release of “Ghost of Yotei” in October is expected to boost sales, following the success of “Ghost of Tsushima,” which has sold 13 million units across PlayStation and PC platforms. Additionally, the highly anticipated “Grand Theft Auto VI” is expected to further boost console sales, although Take-Two Interactive recently announced the game’s release has been delayed until May 2026.
In the year ended March, Sony’s total operating profit, including its financial services business, rose by 16% to 1.4 trillion yen, exceeding analyst expectations.
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