By Kosaku Narioka

Sony makes some of its PlayStation consoles and other electronics in China, and tariffs are likely to take a bite out of this year's profit, the company said Wednesday.

-- For the year that began in April, Sony projected net profit would fall 13%, to the equivalent of about $6.3 billion.

-- That's partly because it estimates U.S. tariffs will cut operating profit by the equivalent of $678 million.

-- However, it said the reduction of U.S. tariffs on China announced Monday wasn't factored into the projection.

China is one of four countries where the PlayStation is made, said Chief Financial Officer Lin Tao, and the company has been diversifying production sites for the PlayStation 5 and building inventory in the U.S. to deal with tariffs.

Sony expects to ship 15 million units of the PlayStation 5 in this fiscal year, down from 18.5 million last year. The console was released in 2020.

Investors cheered strong recent performance at Sony's movie and music divisions as well as a planned share buyback, sending Sony's shares 3.7% higher in Tokyo.

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May 14, 2025 08:02 ET (12:02 GMT)

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