Key Points:
- Sony plans to list Sony Financial Group in October 2025 while retaining just under 20% of the stake.
- Operating profit in the games business declines by about 25% due to hardware promotions and lower sales of first-party titles.
- Sony’s chips division records an 18% increase in profit, and the company collaborates with TSMC for a semiconductor fab in Japan.
Sony (6758.T) has reported a robust 10% increase in operating profit for the third quarter, surpassing estimates driven by the success of its financial, movie, and music businesses. The Japanese conglomerate, known for its evolution from an electronics manufacturer to a diverse entertainment and tech giant, is exploring a partial spin-off of its financial business.
Sony Financial Group is set to be listed in October 2025, with Sony retaining a stake of just under 20% as it focuses on expanding its presence in entertainment and image sensors. The Q3 operating profit reached 463.3 billion yen ($3.08 billion), exceeding the average estimate of 428 billion yen from 11 analysts polled by LSEG.
The company reported the sale of 8.2 million PlayStation 5 units in the third quarter, a significant rise from the previous year’s 7.1 million units during the crucial year-end shopping season. However, the operating profit in the games business saw a decline of about 25%, influenced by increased losses from hardware promotions and lower sales of first-party titles.
Despite the profit dip in the games division, Sony highlighted the sale of 10 million copies of “Marvel’s Spider-Man 2,” launched on Oct. 20. The introduction of a slim version of the console in November aimed to boost sales.
Sony’s chips division recorded an 18% increase in profit, driven by higher sales. The company, a major producer of image sensors for smartphones, remains at the forefront of technology. TSMC recently announced plans to build a second fab in Japan in collaboration with Sony and other partners, signifying confidence in the country’s semiconductor manufacturing capabilities.
Sony’s Q3 performance holds significance amid ongoing dynamics in the gaming console market. While Sony is targeting PS5 sales of 25 million units for the fiscal year, it had sold 16.4 million units by the end of December. The competition includes Nintendo, which raised its full-year Switch forecast, and Microsoft, which is set to provide updates on its games business later this week.
In contrast, Sony’s recent decision to abandon a $10 billion merger of its Indian business with Zee Entertainment has drawn attention. The move would have created a formidable TV entity but was scrapped last month.
