Sony raises profit outlook after booming game quarter

Sales Surge as Sony’s Gaming Division Drives Higher Annual Earnings

PlayStation’s parent company Sony has raised its 2025‑26 profit forecast, attributing the boost to robust performance in its gaming segment and a smaller‑than‑anticipated impact from U.S. tariffs.

Gaming Momentum Outpaces Tariff Woes

• Monthly active users on PlayStation consoles grew 6 % year‑on‑year for June, mirroring a 6 % increase in total gameplay hours during the April‑June quarter.
• “User engagement continues its strong momentum,” Sony said, a phrase that analysts linked to the steady rise in active players.
• Although tariffs still present a risk, sony’s management emphasised their commitment to monitoring the situation and taking measures to minimise its impact.

Tariff Impact Less Severe Than Forecasted

After reviewing the additional U.S. tariffs, Sony estimated the operating‑income hit at approximately 70 billion yen ($470 million), a reduction of 30 billion yen from the previous forecast.

Revised Net‑Profit Outlook

• The company increased its net‑profit forecast for the current fiscal year to 970 billion yen ($6.6 billion), up from the previous estimate of 930 billion yen.
• Even the higher forecast falls short of the record 1.1 trillion yen net profit achieved last year.

PlayStation 5 at the Tail End of Its Lifecycle

Equity analyst Atul Goyal of Jefferies highlighted that the highly anticipated release of the game Grand Theft Auto VI in May 2026 could bring peak game profits to Sony. Goyal noted:

“Sony’s outlook hinges on navigating tariff headwinds, leveraging GTA6’s blockbuster potential, and grappling with cyclical console risks.”

Diversification Beyond Gaming

• Music streaming remains a pivotal pillar, with Sony’s impressive catalogue and roster featuring stars like Beyoncé and Lil Nas X.
• Sony also bought a strategic 2.5 % stake in game franchise giant Bandai Namco, a move aimed at expanding its anime business and creating fresh, emotionally moving experiences for fans.

Financial Performance Highlights

• Net profit jumped 23 % year‑on‑year in this year’s April‑June quarter.
• Sony raised its operating‑profit forecast, reflecting confidence in its diversified portfolio.

Investor reactions were positive; Sony’s shares surged over six percent in Tokyo following the earnings announcement, underlining market confidence in the company’s gaming strategy and broader growth initiatives.