Sony Posts Record Profit, Warns on Tariff Hit

Sony reported a 16% rise in operating profit to 1.4 trillion yen for the fiscal year ending in March, driven by record-high profits in its music segment and strong performances in movies, with notable revenue growth from streaming and live events. Despite these achievements, Sony forecasts flat operating profit for the coming year, citing a projected 100 billion yen ($680–700 million) negative impact from U.S. tariffs. PlayStation 5 sales remain strong, but future growth may be limited by tariffs, potential price increases, and the delayed release of major games such as Grand Theft Auto VI. The company is proceeding with a partial spinoff of its financial unit and a share buyback as part of its strategy to focus on entertainment. Sony expects profit growth in its games business, supported by upcoming titles like 'Ghost of Yotei,' but warns that foreign exchange rates and higher marketing costs could affect results. CEO Hiroki Totoki highlighted the importance of collaboration across Sony's entertainment divisions and investments in immersive experiences for long-term growth.