Sony Group Corp. has announced that it will list its financial arm in October 2025, making a major capital infusion after revising the forecast for its core gaming division. The decision to take Sony’s financial group public will reverse a $3.7 billion take-private deal concluded in 2020. The company’s stock rose 3.2% in premarket trading in New York following the announcement.
After reporting earnings and updating its forecasts for the fiscal year through March, Sony trimmed its revenue forecast due to lower than expected sales of its PlayStation 5 consoles. The company sold approximately 8.2 million consoles in the December quarter, below the average analyst estimates of 9.2 million units. As a result, the company revised its forecast for fiscal year sales down to 21 million units from the previous estimate of 25 million units.
According to Naomi Matsuoka, senior vice president of Sony, the PlayStation 5 is entering the latter stage of its life cycle, and the company will focus more on finding a balance between profitability and sales. This shift in focus led to the reduced sales pace of PS5 hardware and subsequent lower revenue forecast for this fiscal year.
Sony now expects ¥12.3 trillion ($81.7 billion) in sales this fiscal year, down from ¥12.4 trillion previously. The company reported revenue of ¥3.75 trillion and operating profit of ¥463.3 billion in the quarter ended December, in line with average analyst estimates. The disappointing hardware sales contrasted with a strong quarter for software, as Marvel’s Spider-Man 2 sold 2.5 million copies in its first 24 hours.
Despite these challenges, Sony must forge ahead in a competitive market, with rivals Nintendo Co. and Microsoft Corp. expected to launch new hardware in time for the holiday season. Additionally, Sony needs to reshape its strategy in India after a planned merger between its local unit and media outfit Zee Entertainment Enterprises Ltd. reached an impasse.
Chief Operating Officer Hiroki Totoki expressed the company’s interest in the promising market of India, stating that if there’s an alternative to the Zee deal, Sony would actively consider it. With the evolving landscape of the gaming industry and other strategic changes, Sony is adapting to ensure its continued success in the market.
