Sony raises outlook despite slump in PlayStation sales

Japanese electronics giant Sony raised its full-year forecasts on Thursday, with a weaker yen helping offset slowing sales of its ageing PlayStation console and pressure from a global memory chip shortage.

Sony said it now expects net profit of 1.13 trillion yen ($7.2 billion) for the 2025–26 fiscal year, up from a previous forecast of 1.05 trillion yen and representing a six percent increase from last year, News.Az reports, citing AFP.

The company also projected a 20.6 percent rise in operating profit and revenues of 12.3 trillion yen, up 2.2 percent year-on-year, along with an improved operating margin of 12.5%, according to a statement.

In the third quarter, Sony reported an 11 percent increase in net profit, while revenues rose by one percent. Operating income reached 515 billion yen, exceeding analysts’ expectations.

However, Sony’s PlayStation 5, launched in 2020, is showing signs of age. Sales volumes of the console declined 16 percent in the most recent quarter, despite the company offering significant discounts last year to stimulate demand.

At the same time, Sony—like many electronics manufacturers worldwide—is being hit by a growing shortage of memory chips. The supply crunch has pushed up chip prices and is squeezing profit margins across a wide range of electronic products.

The impact of the shortage has also weighed on competitors. Shares in Nintendo, maker of the rival Switch 2, plunged 11 percent on Wednesday amid concerns over software sales and the effects of constrained chip supplies.

Sony shares initially jumped nearly six percent on Thursday but later gave up gains, ending flat in late trading as the broader market declined.

News.Az 

By Nijat Babayev