Sony forecasts 11% operating profit rise to 1.6 trillion yen

Sony announced on May 8 in Tokyo that it expects operating profit to rise 11% to 1.6 trillion yen (US$10.2 billion) for the year ending March 2027, as gains elsewhere offset lower sales in its gaming business, according to Reuters. Operating profit for the year ended March 2026 rose 13.4% to 1.5 trillion yen (US$9.27 billion), though this missed the 1.6 trillion yen (US$9.97 billion) analyst estimate compiled by LSEG. Investors have recently focused on how AI could affect Sony’s businesses and on the lack of clear growth drivers.

Gaming Division Performance

Sony’s gaming sales fell in the latest period, though the overall picture is mixed. The PlayStation 5 game console, now in its sixth year, posted a 16% drop in unit sales during the holiday quarter from October to December. Despite the hardware decline, operating profit in Sony’s gaming division rose 19%, helped by stronger software sales and a weaker yen.

The gaming business continues to shift toward digital channels and online services. Digital downloads made up 76% of software sales, while PlayStation Network, Sony’s online gaming service, reached 132 million monthly active users.

Supply Chain and Geopolitical Pressures

Investors are watching for pressure on margins from higher memory chip prices and supply chain disruption linked to the Iran war. War in Iran could disrupt chip production if it cuts access to helium from Qatar, a material used in chipmaking. This would add pressure to a memory shortage already tied to AI and data center demand, which has lifted memory chip prices.

Contract prices for conventional Dynamic Random-Access Memory (DRAM) chips are projected to climb 90% to 95% this quarter from the prior three months. Sony said it secured the minimum supply of memory chips needed for the next year-end shopping season.