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Sony hikes annual profit forecasts by 4%

Here is the polished and professional version of the blog post<br><br>**Sony Surges Why PlayStation's Strong Performance Leads to 4% Annual Profit Hike**<br><br>In a decisive move that sent shockwaves through the gaming industry, Sony has announced a 4% increase in its annual profit forecasts, driven by robust performance in its key gaming business and a smaller-than-expected negative impact of US trade tariffs. This news prompted a significant surge in Sony's shares, with prices increasing over 6% in Tokyo - a clear indication of investor confidence in the company's future prospects.<br><br>**The PlayStation Phenomenon**<br><br>PlayStation user engagement has continued to demonstrate impressive momentum, with monthly active users rising by 6% year-on-year and total gameplay hours on PlayStation consoles increasing by the same margin. This growth is likely driven by the success of popular titles such as God of War and The Last of Us, which have cemented Sony's gaming division as a major force in the industry.<br><br>**Mitigating Tariff Impact**<br><br>While US trade tariffs were expected to have a significant impact on Sony's profits, the company has successfully minimized their effect through various measures. As a result, the estimated impact of the tariffs on operating income has decreased by 30 billion yen ($470 million) compared to previous forecasts.<br><br>**Revised Profit Forecast**<br><br>Sony's net profit forecast for the current financial year has been revised upward to 970 billion yen ($6.6 billion), up from the previous estimate of 930 billion yen. While this revised forecast represents a significant increase, it still falls short of the record net profit of 1.1 trillion yen achieved in the previous financial year.<br><br>**Looking Ahead**<br><br>The upcoming release of Grand Theft Auto VI (GTA VI) on PlayStation 5 and Microsoft's Xbox has the potential to drive growth for Sony's gaming division. As Atul Goyal, an equity analyst at Jefferies, notes, GTA VI could lead to peak game profits for Sony.<br><br>**A Bright Outlook**<br><br>Despite the challenges posed by tariffs and console lifecycle risks, Sony remains well-positioned for future success. The company's diverse portfolio of businesses, including music streaming and sensors spin-offs, provides a solid foundation for long-term growth.<br><br>---<br><br>Keywords PlayStation, gaming, Sony, profit forecast, tariffs, Grand Theft Auto VI, Xbox, Microsoft, console, music streaming, sensors
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