Sony forecasts flat profit this year as tariffs bite
TOKYO: Sony said on Wednesday it expects operating profit to rise 0.3% to 1.28 trillion yen ($8.7 billion) in the financial year ending in March, after factoring in a 100 billion yen hit from US President Donald Trump's trade war.
The estimated tariff impact does not reflect this week's trade deal between the United States and China and the actual impact could vary significantly, Sony said.
Sony's shares reversed a more than 3% fall from the morning session to rise over 2% in afternoon trading after the results.
The Japanese conglomerate has transformed from a maker of household electronics such as the Walkman to an entertainment behemoth spanning games, movies, music and chips.
President Hiroki Totoki has strengthened his grip over the conglomerate, taking the CEO role last month. Sony is preparing for a partial spin-off of its financial unit as it focuses on entertainment.
The spin-off, which would leave Sony with a stake of less than 20%, will take place in October.
Sony sold 2.8 million PlayStation 5 (PS5) units in the fourth quarter, a 38% drop compared to a year earlier.
Operating profit at the gaming unit fell by 12.5% over the same period.
Sony raised PS5 prices in Europe and Britain last month, citing higher inflation and exchange rate fluctuations. Sony expects profit at the games business to increase by 16% this year due to higher sales of first-party games.
Sony posts 10% profit rise in Q1, beating estimates
'Ghost of Yotei' is set to launch in October, following the success of 'Ghost of Tsushima' which has sold 13 million units on PlayStation and PC. Industry observers expect 'Grand Theft VI' to boost the console business but Take-Two Interactive said this month it has delayed the game's release to May 2026.
Sony's operating profit including financial services rose 16% to 1.4 trillion yen in the year ended March, beating analyst estimates.
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