PlayStation powers Sony to higher profit forecast

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Kritik
02 Aug 2026
254
SubCategory | Business Trends

PlayStation powers Sony to higher profit forecast

Sony has raised its earnings forecast for the current financial year after reporting strong growth in its gaming business, supported by favourable currency exchange rates and improved financial performance across several divisions.

The Japanese technology giant now expects net profit of 1.21 trillion yen (RM30.19 billion) for the financial year ending March 2027, up from its earlier forecast of 1.16 trillion yen (RM28.94 billion).

Sony also increased its revenue outlook to 12.5 trillion yen (RM311.88 billion), compared with the previous estimate of 12.3 trillion yen (RM306.89 billion) announced in May.

The company said the improved outlook was driven by continued strength in its PlayStation business, the weak Japanese yen, and tariff refunds received from the United States.

Despite rising production costs caused by higher memory chip prices linked to growing artificial intelligence (AI) demand, Sony said it has secured enough components to maintain planned PlayStation 5 production throughout the current fiscal year.

The company is also expected to benefit from the release of several major game titles later this year, including Marvel’s Wolverine in September and the highly anticipated Grand Theft Auto VI in November.

However, Sony acknowledged that higher component costs have forced console manufacturers to pass some of the increases on to consumers, affecting overall demand.

According to market research firm Circana, the US video game market recorded a 21 per cent decline in June, while game development costs continue to rise across the industry.

The broader gaming sector has also seen significant restructuring, with Sony-owned Bungie announcing major job cuts in June, while Microsoft confirmed plans to eliminate 4,800 positions, including thousands within its Xbox division.

Some analysts believe Microsoft's reduced investment in gaming hardware could strengthen Sony's position in the console market.

Market analysts have also suggested Sony could introduce a new handheld gaming device before eventually launching the PlayStation 6, which is widely expected to arrive by the end of 2028.

Beyond gaming, Sony expects favourable exchange rates to continue supporting earnings from its music, film and image sensor businesses, particularly those supplying smartphone manufacturers.

For the April to June quarter, Sony reported a 32.1 per cent increase in net profit to 342.2 billion yen (RM8.54 billion), while revenue rose 8.2 per cent compared with the same period last year.

The company also confirmed that this week's powerful earthquake in Kumamoto affected its semiconductor facilities in southwestern Japan, although no major damage was reported.

Source: AFP

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