Sony raised its full-year operating profit forecast by 4% to 1.3 trillion yen (US$9 billion), citing a reduced impact from US trade tariffs.

The Japanese conglomerate now expects a tariff hit of 70 billion yen (US$474.5 million), down from the 100 billion yen (US$678 million) forecast in May 2025, but noted that the situation could change.

For the April to June 2025 quarter, Sony reported a 36.5% rise in operating profit to 340 billion yen (US$2.3 billion), surpassing analyst expectations.

Sony sold 2.5 million PlayStation 5 units during the fiscal first quarter, up 4% from the same period last year.

Sony also plans to reduce its stake in its financial unit to below 20% through a partial spin-off, with a listing scheduled in Tokyo for September 29.

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🔗 Source: Reuters

🧠 Food for thought

1️⃣ Sony’s track record of successful pivots explains its current resilience

Sony’s ability to raise profit forecasts amid trade uncertainties reflects decades of strategic reinvention that transformed the company from a struggling startup into a diversified entertainment giant.

The company started as a small radio repair shop in 1946 with just $500 in borrowed capital, and early products like electric rice cookers and heated cushions failed completely1.

Sony’s breakthrough came with pivoting to electronics, launching Japan’s first transistor radio in 1955 and achieving massive success with the TR-63 model that sold millions worldwide2.

The company continued this pattern of successful transformation with the Walkman in 1979, which sold over 385 million units and revolutionized personal music consumption3.

Sony then entered gaming in 1994 with the PlayStation, which sold over 100 million units and established the company as a gaming powerhouse1.

This history of navigating major industry shifts—from electronics to entertainment to gaming—demonstrates why Sony can maintain strong performance even when facing external pressures like trade tensions.

2️⃣ Sony’s gaming division thrives while broader industry struggles

Sony’s 4% increase in PlayStation 5 sales to 2.5 million units stands out against a gaming industry experiencing significant turbulence.

The gaming sector faced record layoffs with over 8,500 job losses in 2023 and an additional 8,000 in early 2024, despite achieving cultural highs with successful game releases4.

The delay of Grand Theft Auto VI is projected to cost the gaming industry $2.7 billion in 2025, highlighting how dependent the sector has become on blockbuster releases5.

Industry analysts predict only modest 1% growth for gaming overall, with many companies struggling after two years of declining performance6.

Sony’s steady console sales growth amid this industry-wide slump suggests the company has built a more resilient gaming business model, likely benefiting from its diversified entertainment portfolio that spans games, movies, and music rather than relying solely on gaming revenue.

Recent Sony developments

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