Sony raises its full-year outlook, forecasting net profit of about 1.13 trillion yen and operating profit of 1.54 trillion yen, with revenue seen at roughly 12.3 trillion yen as the company benefits from a stronger video game segment amid favorable exchange rates.

Despite a 16% drop in PS5 volume in the October-December quarter, the video game segment is supported by favorable currency moves and ongoing strength in software and services, helping overall sales rise about 1% in the quarter to 3.71 trillion yen.

Sony reports a broad-based quarterly boost, with overall revenue up and multiple divisions contributing to growth, even as hardware prices and memory costs pressure margins.

The company flags risks including reliance on hit game titles, volatility in memory prices, competitive pressures in gaming and entertainment, the pace of memory-price-driven recovery in sensors, and potential disruptions from structural reforms in Entertainment & Services.

Analysts note investors are watching Sony’s pivot from electronics toward entertainment and services, amid AI-related shifts and chip-cost pressures that could affect margins across hardware.

Management remains cautious about future growth drivers as Sony accelerates its shift to live-service and content, while exploring partnerships and licensing to diversify revenue beyond hardware.

There were no major new product launches announced, though Take-Two’s delayed Grand Theft Auto VI could provide a console boost later in the year.

In an accompanying Q&A, executives discussed Marathon’s live-service revenue and memory-price impacts on PS5 hardware, as well as the scope of the TCL TV/home entertainment partnership and trajectory in music and IS&S.

Sony is positioning itself around live-service gaming, cloud, cross-platform content, and licensing models to sustain high-margin revenue rather than relying solely on owning a single streaming platform.

Management noted improved supply chains but warned AI adoption in gaming adds uncertainty; memory supplies for the next year are secured to support steadier orders.

DRAM supply constraints and high memory prices are cited as headwinds for console hardware, with some analysts expecting the shortage to persist into 2027.

Q3 highlights include strong digital downloads and growth in Music and Pictures from digital platforms and releases, with upcoming projects and potential 2027 plans mentioned but without detailed box office figures.