Sony raises guidance as Q1 profit beats forecast on strong gaming business

Sony Interactive Entertainment began shipping PS5 boxes with a multilingual notice that from Jan. 2028 newly released PlayStation games will be digital-only, while discs for earlier releases remain playable. The label is cited by antitrust experts as strengthening plaintiffs’ arguments in six ongoing proceedings across the US, UK, Netherlands, Portugal, and Mexico. Sony says about 82% of PS4/PS5 full-game sales were digital in Q1 FY2026.

Sony reported fiscal Q1 2026 Game & Network Services operating income of ¥202B, up 37% YoY, while segment revenue was flat at ¥937.1B. Sony said U.S. tariff refunds were the main driver, expecting about ¥80B for the full year, with roughly 70% received in Q1. PlayStation MAU hit 125M in June, but play time fell 4% YoY.

Sony reported first-quarter profit up 40% and raised its full-year group operating profit forecast. For the year ending March, Sony lifted group operating profit 8% to 1.72 trillion yen, citing gaming strength, US tariff refunds, exchange-rate gains and cost control. Sony said it secured sufficient memory chip supply for FY26. PS5 sales were 1.6 million units in Q1, down about a third.

A 7.1 earthquake in Japan’s Kumamoto Prefecture on July 28 disrupted semiconductor production in Kyushu. TSMC evacuated JASM staff and later said inspections found structures safe and operations are gradually resuming. Renesas halted two plants, Tokyo Electron paused two sites for safety checks, and Sony evacuated and stopped production in Kumamoto. Toyota and Honda also suspended/extended operations due to supply and repair impacts.

Sony said in its July 31 first-quarter earnings report that strong sales of its full-frame cameras A7 V and A7R VI helped raise average selling prices and expand its full-frame market share, keeping Imaging sales roughly flat year over year. Sony also reported image sensor division sales up 26% and operating income at a record, while warning of higher memory costs and a plant suspension after a July 28 earthquake. Overall sales rose 8% and net income 32% YoY.

Sony said in its latest financial statement that it has secured enough memory to meet projected PS5 sales volume for FY26, with supply sufficient until March 2027, and that its FY26 hardware profitability plan remains similar to FY25. The article cites Q1 2026 PS5 sales of 1.6 million units and 125 million PlayStation monthly active users in June.