Japan’s Sony reported a record net win on Wednesday on Wednesday, but published a cautious forecast and hopes to be able to manage the effects of the US trade tariffs on his business.
The entertainment and electronic giant said that the income had been strong in the end of March 2025 in the end of March 2025.
But the extensive trade taxes of US President Donald Trump have made the business environment less predictable, also for global conglomerates like the Sony Group.
“We are currently working on managing the effects on profitability on around 100 billion yen ($ 680 million) or less than 10% of the operational income forecast,” said the company.
The company’s PlayStation 5 console production was “not in close position” despite the tariffs, but Sony monitored Trump’s plan for a 100% tariff for films that were produced outside the USA, said President and Chief Executive Officer Hiroki Totoki.
“Films are made in different locations depending on the storylines. That is the general practice,” he said at a press conference.
“Decisions to work outside the United States are made due to the increasing costs of Hollywood.”
Sony achieved a record net profit of 1.14 trillion yen ($ 7.7 billion) for the 2024-25 financial year, but said that this drops by 13% to 930 billion yen in the current financial year.
The forecast does not include the financial services sector, which the company will partially split over the next 12 months.
Sony said on Wednesday that the decision to split off would be able to concentrate on a business portfolio that focuses on creation, in particular its entertainment companies and image sensors that are used in smartphone cameras.
PS5 price hikes
The company had increased its annual forecasts in February after robust sales of games, music and other products in the holiday shopping season at the end of the year.
The relative weakness of the yen has also increased the value of many exports of the conglomerate.
Music Streaming is a money spinner for Sony who has an impressive back catalog and a squad that includes superstars like Beyonce.
In mid-April, Sony announced price increases for several models in his PlayStation 5 gaming console in markets such as Europe, but in particular the United States.
PS5 consoles are mainly gathered in China, which agreed with the United States on Wednesday to drastically reduce in their brutal trade war.
So far, Sony has not touched the costs for the higher PS5 Pro console with a higher SPEC-Spec PS5 console that hit the shelves in November.
Overall, “with regard to the increase in US tariffs (Sony), it will probably deal with it for the time being, as it has the existence in the USA,” said Yasuo Imanaka last month.
“But if high tariffs are continued, the long -term effects are unclear,” he warned.
Masahiro Wakasugi from Bloomberg Intelligence also said before the income on Wednesday that “tariffs will probably be a headwind next year” for Sony.
But “the income of the music and image department can also be greatly expanded thanks to the high popularity of their streaming music and films”.
Sony’s shares rose by 3.67% to 3,788 yen in Tokyo.
This story was originally on Fortune.com