Sony Group reported stronger-than-expected financial results for the December quarter, with operating profit surging 22% year-on-year to ¥515 billion ($3.3 billion), significantly beating analyst estimates of ¥468.9 billion. Revenue for the quarter reached ¥3.71 trillion ($23.68 billion), slightly ahead of forecasts.
The company attributed the robust performance primarily to growth in its game, music, and image-sensor businesses. Despite this, the Game & Network Services division, home to the PlayStation brand, saw sales decline by ¥68.7 billion to ¥1.613 trillion. Sony noted that while digital game purchases and PlayStation Plus subscriptions provided momentum, hardware shipment growth was "limited" due to supply constraints for DRAM memory chips.
A critical challenge highlighted is the ongoing shortage of DRAM chips, a key component in PlayStation consoles. This shortage is driven by soaring demand from artificial intelligence and data center operators. Market research firm TrendForce forecasts contract prices for conventional DRAM to rise between 90% and 95% in the current quarter, with industry executives warning shortages could persist through 2027.
Encouraged by the quarterly performance, Sony raised its full-year financial outlook. The company now projects an operating profit of ¥1.54 trillion for the fiscal year, an increase of ¥110 billion (8%) from its prior forecast. Annual revenue guidance was also lifted by ¥300 billion to ¥12.3 trillion. Sony maintained its estimate that U.S. tariffs would reduce operating profit by ¥50 billion.
Beyond gaming, Sony's music division saw revenue jump 12.6%, aided by live events and streaming, while its imaging and sensing solutions (semiconductor) unit posted a revenue gain of over 20%. The company continues to reshape its portfolio, recently forming a joint venture for its TV business and spinning off its financial services unit to focus more heavily on entertainment content.
