Sony lowers PS5 sales forecast, plans IPO for financial unit
Sony Slashes PS5 Sales Forecast
Sony has drastically reduced its projected sales figures for the PlayStation 5 console for the current fiscal year, citing weaker-than-expected sales during the holiday shopping season. The company now anticipates selling 21 million units, down from the initial estimate of 25 million.
Sony to List Financial Business
Alongside the cut in PS5 sales forecasts, Sony has announced plans to list its financial business in October 2025. The company intends to retain a stake of just under 20% in Sony Financial Group while focusing on the entertainment and image sensors sectors.
Financial Performance
Sony’s operating profit in the October-December quarter increased by 10% to 463.3 billion yen, surpassing analysts’ average estimate of 428 billion yen. The resilient performance was driven by the strong showing of the financial, movies, and music sectors, offsetting weaker results in the games division.
PlayStation 5 Sales
Despite selling 8.2 million PlayStation 5 units in the third quarter, up from 7.1 million units a year earlier, the games business saw a nearly 25% decline in operating profit due to higher hardware losses and lower sales of first-party titles.
Market Competition
Reflecting on market dynamics, industry experts noted that Nintendo has raised its full-year Switch forecast, while Microsoft is expected to reveal updates on its games business. Sony faces competition as it navigates the evolving landscape of gaming platforms and major third-party titles.
Beyond Gaming
Aside from the gaming domain, Sony’s chip division experienced an 18% profit increase driven by higher sales. The company’s plans for a second fabrication plant in Japan indicate its commitment to expanding its footprint in the semiconductor industry.
Long-Term Strategy
Despite setbacks such as scrapping a planned merger in India, Sony remains optimistic about long-term growth opportunities. The company’s leadership expressed willingness to explore alternative plans and continue formulating an organic growth strategy.
Market Performance
Sony’s shares closed down 0.5% ahead of earnings, showing a 9% increase year-to-date. The company remains resolute amid market challenges as it navigates various business segments and strategic decisions.
($1 = 150.5400 yen)
