Sony Projects Flat Annual Profit Amid Tariff Pressures and Gaming Slowdown
- tech360.tv
- 2 days ago
- 2 min read
Sony Corp. expects its operating profit to remain nearly flat this financial year, forecasting a 0.3% rise to 1.28 trillion yen (USD 8.7 billion), as it absorbs a 100 billion yen impact from U.S. trade tariffs.
The projection does not account for the recent trade agreement between the United States and China, and the actual effect of tariffs may vary significantly, the company said Wednesday.
Shares in Sony closed up 3.7% after the announcement. The company also revealed plans to repurchase up to 100 million shares, valued at approximately 250 billion yen.
Sony has evolved from a consumer electronics brand into a global entertainment powerhouse, with operations spanning gaming, music, film and semiconductors.
President Hiroki Totoki, who became CEO last month, reaffirmed the company’s focus on entertainment. Sony is preparing to partially spin off its financial services unit, retaining less than a 20% stake.
The financial unit is scheduled to list on the Tokyo Stock Exchange on Sept. 29.
“We have seen the resilience of entertainment businesses during economic downturn, like during the COVID-19 pandemic,” Totoki said during an earnings briefing.
Sony sold 2.8 million PlayStation 5 units in the January-March quarter, a 38% decline from the same period last year. Operating profit in the gaming division dropped 12.5%.
Chief Financial Officer Lin Tao said sales were in line with expectations following the year-end shopping season. Sony raised PS5 prices in Europe and the United Kingdom last month, citing inflation and currency fluctuations.
The company has been stockpiling inventory in the United States and diversifying its hardware production.
Sony expects a 16% increase in profit from its gaming business this year, driven by higher sales of first-party titles. Lin said the company aims to sell 15 million PS5 units in the current year but noted that shipment plans remain flexible due to market uncertainties.
The upcoming release of “Ghost of Yotei” in October is expected to follow the success of “Ghost of Tsushima,” which has sold 13 million units across PlayStation and PC.
While industry analysts anticipate “Grand Theft Auto VI” to boost console sales, Take-Two Interactive recently delayed its release to May 2026.
Nintendo, meanwhile, announced plans to sell 15 million units of its Switch 2 console, launching June 5.
Sony’s overall operating profit, including financial services, rose 16% to 1.4 trillion yen in the year ended March.
Sony forecasts flat profit growth due to 100 billion yen tariff impact
PS5 sales dropped 38% in the January-March quarter
Gaming unit profit fell 12.5%, but 16% growth expected this year
Source: REUTERS
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