Cryptopolitan
2025-11-11 11:34:32

Sony cites low tariff impact, booming entertainment businesses for optimistic forecast

Sony Group has announced an 8% increase in its profit forecast for the year ending March 2026. The company attributes its improved financial performance to a less impactful tariff environment and its growing entertainment and chip businesses. Japanese entertainment corporation Sony has raised its yearly profit estimate for the year ending March 2026 by 8%. The company estimates to realize ¥1.43 trillion ($9.5 billion) in profit next year. The conglomerate believes that the prevailing low tariff environment has created a conducive environment favoring its business model. Sony also credits the optimistic forecast to the growing strength of its entertainment and chip businesses. The projections come amid a surge in realized quarterly profit. Sony’s music unit recorded a surge in sales that ultimately spiked the company’s July-September quarter operating profits by 10% to ¥429 billion. Sony’s music division soars on ‘Demon Slayer’ boom Sony also credited the positive numbers to the success of “Demon Slayer: Kimetsu no Yaiba Infinity Castle,” a recently released animated action. The movie was distributed worldwide by Crunchyroll and Sony Pictures, earning $312 million globally by the end of September. According to the announcement , the movie had the highest-grossing opening weekend for an anime film in history. Demon Slayer: Kimetsu no Yaiba infinity Castle had a record breaking opening weekend and continues to climb! See it now, only in theaters! 🏯🔥 pic.twitter.com/fq8elYrLN8 — Sony (@Sony) September 18, 2025 As a result, the firm’s Visual Media & Platform division, which manages anime and related content through its Aniplex unit, saw its quarterly revenue surge significantly. The division recorded a revenue increase from ¥62.2 billion to ¥105.9 billion ($673 million), representing a sharp 70% rise. The division’s profit share also grew significantly, making up just under 30% of Sony Music’s total profit. Sony’s market dominance was once closely tied to the household electronics business. However, the conglomerate has now shifted to a seemingly more profitable venture in the entertainment industry, with specifics narrowing to the growing popularity of anime. Despite the outstanding performance in entertainment, Sony still registered declining numbers in the gaming industry. The company’s gaming business profit declined in the second quarter, following the recording of impairment losses related to the “Destiny 2” video game. The game is reportedly experiencing issues after players reported a high volume of glitches and bugs. As a result, the Game & Network Services segment reported that its operating income fell 13% to ¥120.4 billion ($781 million). However, segment profit would have risen 23% if one-time expenses were excluded. Take-Two Interactive also announced it had delayed the highly anticipated “ Grand Theft Auto VI ” release to November of next year. The move is expected to boost Sony’s PlayStation business as gamers look to upgrade their gaming consoles or purchase specialized hardware to support the video game. Sony Group projects full-year sales of ¥12 trillion The Japanese firm anticipates full-year sales of ¥12 trillion ($77.78 billion) and operating income of ¥1.43 trillion, with higher contributions from music, imaging, and a more favorable tariff burden from the Trump administration. The company retained its interim dividend of ¥12.5 per share and plans a similar year-end dividend for its investors, estimated to reach ¥25 per share, up from ¥20 the previous year. On October 1, Sony completed the spin-off of its financial services arm, Sony Financial Group Inc., and the arm is now treated as a discontinued operation. Earnings from the unit will be accounted for under the equity method, effective as of the third quarter. The group’s average foreign exchange rate for the quarter declined from ¥149.5 to the U.S. dollar a year earlier to the current rate of ¥147.4. Nintendo also increased its annual sales estimates for the Switch 2 to 19 million units after witnessing a surge in customer demand for the gaming console, which launched earlier this year in March. Sony is a leading manufacturer of image sensors used in smartphones. The company noted that tariff announcements and other factors may have contributed to the spike in sales. The company estimates a ¥50 billion hit from tariffs during the financial year, representing a ¥20 billion reduction from the August estimate of ¥70 billion. If you're reading this, you’re already ahead. Stay there with our newsletter .

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