Sony Raises Full-Year Profit Forecast, Cites Lower Tariff Impact and Strong Gaming Performance

Sony has increased its full-year operating profit forecast by 4% to 1.33 trillion yen ($9.01 billion), driven by a smaller-than-expected impact from U.S. tariffs and strong sales in its gaming division.

The company now anticipates tariffs will reduce profits by 70 billion yen, down from the 100 billion yen estimated in May. CFO Lin Tao noted that tariff rates remain fluid, especially regarding product-specific duties, and expects further uncertainty and potential tariff impacts in the second half of the fiscal year.

Sony’s gaming segment showed significant strength, with operating profit more than doubling to 148 billion yen in the April-June quarter. The rise was fueled by increased sales of network services and third-party games. The company sold 2.5 million PlayStation 5 consoles in the quarter, marking a 4% year-on-year increase. New game releases like “Death Stranding 2: On The Beach” received positive reviews, while “Ghost of Yotei” is scheduled for October.

Shares rose 4% following the earnings announcement, contributing to a roughly 15% gain in Sony’s stock year-to-date. Analysts observe Sony’s growing dominance in high-fidelity gaming, competing more directly with PC gaming than Xbox.

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