On Thursday, Sony announced an increase in its full-year operating profit forecast, raising it by 4 percent to JPY 1.33 trillion (approximately $9.01 billion). The adjustment was attributed to various factors, including an anticipated reduction in the impact of tariffs imposed by US President Donald Trump.
The company now estimates that tariffs will affect its operations by JPY 70 billion, down from the JPY 100 billion forecasted in May. This figure is based on tariff rates effective as of August 1, although the company acknowledged that the situation is still evolving.
Japanese enterprises have been revising their expectations regarding tariffs as numerous trade agreements with the US materialize, including one involving Japan that was finalized last month.
“There are still some fluid aspects, such as product-specific tariffs,” stated Chief Financial Officer Lin Tao during an earnings briefing.
The company anticipates that uncertainties in the business landscape, including the potential for additional US tariffs, could have a more pronounced effect in the latter half of the year.
Additionally, Sony indicated a more optimistic profit outlook for its gaming division, which has benefited from increased sales in network services and favorable currency exchange rates.
Historically recognized for products like the “Walkman” portable cassette player, Sony has evolved into a major entertainment powerhouse, encompassing gaming, film, and music, alongside its status as a leading producer of smartphone image sensors.
The corporation reported a substantial 36.5 percent surge in operating profit, reaching JPY 340 billion for the April-June quarter. This exceeded the average estimate of JPY 288 billion projected by eight analysts surveyed by LSEG.
Following the announcement of its earnings during the midday trading session, Sony’s shares experienced a 4 percent increase. The stock has risen approximately 15 percent since the beginning of the year.
In the first quarter, Sony sold 2.5 million PlayStation 5 consoles, marking a 4 percent increase from the same quarter the previous year.
The recent launch of “Death Stranding 2: On The Beach” in June received favorable reviews, while “Ghost of Yotei” is set to be released in October.
Operating profit in the games division more than doubled, reaching JPY 148 billion, thanks to higher sales of both network services and third-party games.
“Sony is further cementing its dominance in high-fidelity gaming,” remarked Serkan Toto, founder of the consulting firm Kantan Games. He added, “In my view, Sony is now competing with the PC more than the Xbox,” referring to Microsoft’s gaming console.
The console market was anticipated to receive a boost this year with the launch of “Grand Theft Auto 6”; however, the release has been postponed until 2026.
Nintendo, expected to benefit from the delay of GTA 6, recently reported strong early interest in its new Switch 2 gaming device.
In another development, Sony is preparing to reduce its stake in its financial division to below 20 percent through a partial spin-off, with plans for the unit to be listed on the Tokyo Stock Exchange on September 29.
© Thomson Reuters 2025
