Tokyo (AFP) – Shares in Japanese giant Sony jumped more than five percent Tuesday after it hiked full-year profit forecasts thanks to the latest “Demon Slayer” anime blockbuster. The company also put the improved forecasts down to higher expected sales of its PlayStation games console and a smaller-than-expected impact from US tariffs.
For the 2025-26 financial year, Sony sees net profit of 1.05 trillion yen ($6.8 billion), up eight percent from its last forecast, little changed from last year’s record profit. It also increased its operating profit projection by eight percent and its sales forecast by three percent. The new guidance was the second hike this year, with Sony in August having raised its net profit projection to 970 billion yen. In the first half of the current financial year, net profit rose 13.7 percent year-on-year to 570 billion yen, Sony said.
“Demon Slayer: Kimetsu No Yaiba — Infinity Castle: Part 1,” the first title in a new trilogy based on the popular manga series, has been a huge hit. The animated movie has become the second-highest grossing film of all time in Japan, second only to the previous “Demon Slayer” movie, a Covid pandemic hit. The dark fantasy about sword-swishing Tanjiro Kamado’s final showdown to slay demons also topped the box office when it opened on US and Canadian screens in September.
Sony lowered its forecast for the impact of US tariffs to around 50 billion yen, a reduction of 20 billion yen from the previous estimate in August. Trade officials in July reached a deal that saw the United States lower tariffs on Japanese goods to 15 percent from a threatened 25 percent. Japanese auto giant Toyota last week also hiked its operating income and net profit forecasts for the current fiscal year.
Sony in August bumped up the price of PlayStation 5 video game consoles by $50 in the United States, citing a “challenging economic environment.” The PlayStation 5, which launched in 2020, is “in the downcycle of its lifespan,” analyst David Cole of DFC Intelligence told AFP. The hotly anticipated upcoming release of the “Grand Theft Auto VI” game is also important for Sony. Its creators, Rockstar Games, last week again delayed the launch, this time until November 2026.
“Overall this is one of the biggest concerns for PlayStation sales as GTA6 is expected to be a major driver for Sony,” said Cole. “However, the PlayStation business model is such that it is not dependent on one or two big hits,” he said. Sony Group shares were up 5.7 percent in afternoon trade.
© 2024 AFP
