Sony lifts its full-year profit outlook as a weak yen offsets falling PlayStation 5 sales and a global memory chip shortage.
TOKYO: SONY has raised its full-year financial forecasts despite declining sales of its flagship PlayStation 5 console.
The Japanese conglomerate now expects a net profit of 1.13 trillion yen for the fiscal year ending March 2026, up from a previous projection of 1.05 trillion yen.
Operating profit is projected to rise 20.6% on revenues of 12.3 trillion yen, with the company citing a weaker yen as a compensating factor.
For the October-December quarter, net profit rose 11% year-on-year to 463.3 billion yen.
Operating income of 515 billion yen surpassed analyst expectations.
PlayStation 5 sales volumes fell 16% in the last quarter as the console, launched in 2020, ages.
The company offered significant discounts on the device last year to stimulate demand.
A global memory chip shortage is also pressuring profit margins across the electronics industry.
The artificial intelligence boom has driven up prices for conventional NAND and DRAM chips.
Demand for high-bandwidth memory chips used in AI servers has soared.
“It will definitely get more difficult to offer reduced prices (of the PS5) this year than in 2025,” gaming industry consultant Serkan Toto said.
Sony made no comment on the chip crunch in its earnings release.
Analysts warn it could also affect its camera, TV, and smartphone divisions.
The highly anticipated release of “Grand Theft Auto VI” is seen as critical for sustaining PS5 sales.
Rockstar Games delayed the game’s launch last year until November 2026.
“In 2026, GTA VI will do to PS5 what Covid did a few years ago to Sony: provide a massive boost, enough to carry the platform to 2028,” Toto said.
Sony is banking on growth in its music division from concert and merchandise sales.
Results are expected to stagnate in its film and consumer electronics segments.
The company began reducing exposure to low-margin electronics years ago to focus on entertainment and imaging.
Sony’s estimate for the impact of US tariffs on Japanese imports remains unchanged at 50 billion yen.
Shares in Nintendo, maker of the rival Switch 2, dived 11% on Wednesday over chip supply concerns.
Sony’s stock initially soared almost 6% on the forecast hike but was flat in late afternoon trade.
