- Sony (NYSE:SONY) reported its fiscal Q4 2024 results this week, revealing a mixed performance across its business segments and issuing a cautious outlook for the year ahead amid rising tariff concerns
- The Japanese tech and entertainment giant posted consolidated sales of ¥2.63 trillion (US$17.24 billion), marking a 24 per cent year-over-year decline
- In April, Sony raised PS5 prices by up to 25 per cent in select EMEA and Asia-Pacific markets, citing inflation and currency volatility
- Sony stock (NYSE:SONY) opened trading at US$24.64
Sony (NYSE:SONY) reported its fiscal Q4 2024 results this week, revealing a mixed performance across its business segments and issuing a cautious outlook for the year ahead amid rising tariff concerns.
The Japanese tech and entertainment giant posted consolidated sales of ¥2.63 trillion (US$17.24 billion), marking a 24 per cent year-over-year decline and falling short of the analyst consensus estimate of US$20.40 billion. Despite the revenue miss, Sony delivered an earnings surprise, with earnings per share (EPS) of ¥32.63 (21 cents), beating expectations of 12 cents.
Segment highlights
- Game and network services: Revenue declined 4.2 per cent to ¥1.05 trillion, while operating income dropped 12.5 per cent to ¥92.7 billion. Sony sold 2.8 million PlayStation 5 units during the quarter, down from 4.5 million a year ago and 9.5 million in the previous quarter. However, game software sales rose 9 per cent, helping boost operating income by 43 per cent year-over-year.
- Music: Continued strong performance with revenue up 9.5 per cent to ¥470.7 billion and operating income rising 17.4 per cent to ¥83.6 billion.
- Pictures: Revenue edged up 1.9 per cent to ¥414.6 billion, while operating income surged 74.3 per cent to ¥53.5 billion, driven by strong content performance.
- Entertainment, technology and services: Revenue fell 9.1 per cent to ¥484.1 billion. Operating losses widened to ¥20.4 billion from ¥6.4 billion a year earlier.
- Imaging and sensing solutions: Revenue rose 2.6 per cent to ¥409 billion, with flat operating income at ¥34.5 billion.
- Financial services: The segment posted a revenue loss of ¥172.4 billion and an operating loss of ¥11.6 billion.
Overall, consolidated operating income declined 11.2 per cent to ¥203.6 billion, while net income rose 8.7 per cent to ¥197.7 billion.
Outlook
Sony announced a new stock buyback program of up to 100 million shares worth ¥250 billion, effective from May 15, 2025, to May 14, 2026. The company also plans a partial spin-off of its Financial Services unit in October 2025, which will be classified as a discontinued operation starting Q1 FY2025.
Looking ahead, Sony expects FY2025 sales of ¥11.7 trillion ($81.82 billion), significantly below the analyst consensus of ¥13.34 trillion. Operating income is projected at ¥1.38 trillion before tariffs and ¥1.28 trillion after accounting for tariff impacts.
Tariff concerns and production strategy
Sony executives expressed concern over the impact of U.S. tariffs on Chinese-made goods, which have recently fluctuated under the Trump administration. CFO Lin Tao stated the company needs to “find ¥100 billion” to offset tariff-related costs, hinting at potential price hikes for hardware like the PS5.
CEO Hiroki Totoki revealed that Sony is considering manufacturing PlayStation consoles in the U.S. to mitigate tariff exposure—a move aligned with U.S. policy goals but challenging to implement quickly.
In April, Sony raised PS5 prices by up to 25 per cent in select EMEA and Asia-Pacific markets, citing inflation and currency volatility. The company has now sold 77.8 million PS5 units since launch, closely tracking the PS4’s trajectory. At the beginning of this month, Microsoft (NASDAQ:MSFT) raised prices on its X-Box series consoles.
Despite strong earnings in some segments and shareholder-friendly initiatives, Sony’s cautious guidance reflects the growing uncertainty in global trade dynamics and consumer electronics demand.
About Sony
Sony Corp. is one of the most comprehensive entertainment companies in the world, with a portfolio that encompasses electronics, music, motion pictures, mobile, gaming, robotics and financial services.
Sony stock (NYSE:SONY) opened trading 1.15 per cent lower at US$24.64 but has risen 46.48 per cent since this time last year.
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