Japan's Sony sees profit grow on demand for games, but quake damage still unclear

July 31, 2026 - 07:39

TOKYO - Sony Group Corp. announced a 32% increase in profit for its fiscal first quarter on Friday, driven by robust demand for its gaming and entertainment divisions. The company also cautioned that the financial fallout from the recent earthquake in southwestern Kumamoto remains uncertain.

The Japanese tech and entertainment giant posted a net profit of 231.6 billion yen, up from 175.5 billion yen in the same period last year. Revenue climbed 7% to 2.9 trillion yen, fueled by strong sales of PlayStation 5 consoles and a steady stream of game software titles. The music and movie segments also contributed to the upbeat results, with streaming services and theatrical releases performing well.

However, the company's outlook was tempered by the magnitude 7.0 earthquake that struck Kumamoto earlier this week. Sony operates a semiconductor plant in the region, which produces image sensors used in smartphones and digital cameras. The company said it is still assessing the damage to the facility and its supply chain, and that the full impact on production and revenue cannot be determined at this time.

Sony's shares dipped slightly in Tokyo trading following the announcement, as investors weighed the positive earnings against the potential disruption from the quake. The company maintained its full-year profit forecast for now, but executives noted that the figure could be revised downward once the damage assessment is complete.

The gaming division, which has been a key growth driver for Sony in recent years, saw operating profit rise 15% in the quarter. The company also highlighted strong sales of its network services and peripherals. Meanwhile, the movie segment benefited from the success of a major animated release, and the music division saw continued growth in streaming revenue.

Analysts say the quake's impact could be significant, given that Sony is a major supplier of image sensors to global smartphone makers. The company said it is working to resume operations at the affected plant as quickly as possible, but no timeline has been provided.