Sony slashes PlayStation 5 sales forecast, plans financial business listing

Sony's PS5 targets: Sony Corporation announced a downward revision of its full-year sales forecast for the PlayStation 5 console on Wednesday, reducing it to 21 million units from the previously projected 25 million units. The adjustment comes after weaker-than-expected sales during the year-end shopping season.

In addition to the sales forecast update, Sony revealed plans to list its financial business, Sony Financial Group, in October 2025. The company intends to retain a stake of just under 20 per cent in the listed entity.

Despite the challenges in the gaming segment, Sony reported a strong operating profit of $3.08 billion for the October–December quarter, surpassing estimates. This performance was largely driven by the strong showing of its financial, movie, and music businesses.

Sony and innovations 

Sony, known for innovations like the Walkman, has evolved into an entertainment and tech giant with interests in movies, music, games, and chips.

Although PlayStation 5 sales reached 8.2 million units in the third quarter, up from 7.1 million units a year earlier, the games business saw a decline in operating profit due to increased losses from hardware and lower sales of first-party titles.

In contrast, Nintendo recently raised its full-year Switch forecast to 15.5 million units, while Microsoft is set to provide updates on its games business on Thursday.

Meanwhile, Sony's chip division reported an 18 per cent increase in profit, buoyed by higher sales. The company's collaboration with TSMC to build a second factory in Japan signifies confidence in the country's chip manufacturing capabilities.

Notably, Sony abandoned plans for a $10 billion merger of its Indian business with Zee Entertainment last month, a move that would have reshaped the TV industry landscape.

(with Reuters inputs)