Sony has posted a solid 18 percent rise in net profit for the financial year ending March 2025, reaching 1.14 trillion yen (around $7.7 billion), driven by strong performances across its video game, music, and film divisions. However, the Japanese tech and entertainment giant issued a cautious forecast for the year ahead, predicting a 13 percent dip in profit to 930 billion yen.
The outlook reflects growing concern over global economic uncertainty, particularly in the face of renewed US tariffs under President Donald Trump’s administration, which have created fresh challenges for multinationals.
“We are responding quickly to the additional US tariffs that have already been implemented and are considering responses to multiple possible future scenarios,” Sony said in a statement. The company expects the impact on operating profit to be contained to around 100 billion yen—less than 10 percent of its forecast.
Sony had already revised its earnings projections upwards in February after seeing robust demand during the October-December holiday season, especially for gaming and music-related products.
Rakuten Securities’ chief analyst Yasuo Imanaka noted last month that Sony’s entertainment divisions remain strong: “Its video game, music and film businesses are showing steady performance. The next fiscal year to March 2026 is also expected to see steady growth.”
Regarding the tariffs, Imanaka pointed out that Sony has managed to cushion the immediate impact by stockpiling inventory in the United States. “But if high tariffs continue, the longer-term impact is unclear,” he cautioned.
Sony has already taken selective pricing actions in response to economic conditions. In April, the company increased the price of some PlayStation 5 consoles in several markets—but notably not in the US—citing challenging global economic conditions. The PS5 Pro, a higher-end version of the console released in November, has retained its original price.
Masahiro Wakasugi of Bloomberg Intelligence also flagged tariffs as a likely obstacle in the coming year but suggested Sony’s entertainment assets could help offset the damage. “The music and picture division’s earnings can also expand strongly thanks to the high popularity of its streaming music and movies,” he said.
Sony continues to benefit from a lucrative music streaming sector, backed by a rich back catalogue and a popular current lineup featuring global artists such as Beyoncé and Lil Nas X.