Sony has raised its full-year operating profit forecast by 4% to 1.33 trillion yen ($9.01 billion), citing reduced expected losses from U.S. tariffs. The company now estimates a 70 billion yen tariff impact—down from its May projection of 100 billion yen—following improved trade conditions after Japan’s recent deal with the U.S. However, Sony cautioned that the situation remains fluid, as its estimates are based on tariff rates as of August 1.
The Japanese conglomerate posted a 36.5% surge in operating profit to 340 billion yen for the April-June quarter, surpassing analyst expectations of 288 billion yen. The strong performance sent Sony shares up 5% following the midday earnings announcement. Key drivers included robust sales in its gaming division, where operating profit more than doubled to 148 billion yen, fueled by network services and third-party game sales.
Sony sold 2.5 million PlayStation 5 consoles in the first quarter, a 4% year-on-year increase, though the gaming industry faces a setback with the delayed release of Grand Theft Auto VI to 2026. Nintendo, seen as a potential beneficiary of the delay, recently reported strong early demand for its upcoming Switch 2 console. Meanwhile, Sony continues to pivot from its legacy electronics business—once defined by products like the Walkman—to a diversified entertainment powerhouse spanning games, movies, music, and smartphone sensors.
The company’s upward revision reflects both favorable exchange rates and resilience in its entertainment and tech divisions. While trade uncertainties persist, Sony’s diversified business model and strong gaming performance position it for sustained growth, even as competitors like Nintendo capitalize on shifting industry dynamics.
