Sony Group Corp. raised its annual revenue forecast but warned of a challenging second half as the Japanese entertainment giant navigates slower gaming releases and weakening sensor demand after posting record quarterly profits.
The company lifted its full-year sales outlook by ¥100 billion to ¥12.71 trillion while maintaining its operating profit target at ¥1.31 trillion for the fiscal year ending March 2025. Operating income jumped 73% to ¥455.1 billion ($3 billion) in the quarter ended September 30.
“We expect consolidated operating income excluding financial services to be slightly lower than the same period of the previous fiscal year in the second half,” CFO Hiroki Totoki said, citing the absence of major first-party game releases and demand adjustment from a key image sensor customer.
The gaming division, which saw profits nearly triple to ¥138.8 billion in Q2, faces a more subdued outlook with no blockbuster titles planned. However, the PlayStation network continues to expand, with monthly active users increasing 8% year-on-year to 116 million accounts in September.
Looking ahead, Sony aims to strengthen its gaming portfolio by releasing major single-player titles annually starting next fiscal year, beginning with Ghost of Tsushima sequel. The company is also refining its approach to live service games after mixed results from recent launches.
In the sensor business, Sony cut its annual sales forecast by ¥80 billion to ¥1.77 trillion, reflecting reduced production plans for a major customer. The company expects the integration of AI functionality in smartphones to potentially bring short-term market volatility but sees it as a long-term growth driver.
The entertainment conglomerate continues to prepare for the partial spin-off and listing of its financial services unit in October 2025, with the segment’s operating income more than quadrupling to ¥65.7 billion in Q2 despite market fluctuations.
Sony has completed most of its ¥250 billion share buyback program announced earlier this year, repurchasing ¥237.1 billion worth of shares through October. The company implemented a five-for-one stock split on October 1 to enhance stock liquidity.
