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Sony’s Robust Profit Forecast Amid Q4 Headwinds

Fourth-Quarter Performance Exceeds Expectations

Sony reported fourth-quarter revenue of 3.036 trillion yen ($19.4 billion), exceeding analyst expectations of 2.896 trillion yen. Operating profit, however, fell short of forecasts, reaching 164 billion yen compared with expectations of 278 billion yen.

While hardware sales declined from 183 billion yen to 110 billion yen year-on-year, stronger performance in Sony’s image sensor and music divisions helped support overall revenue growth. Sales of the PlayStation 5 also weakened during the quarter, with unit sales falling to 1.5 million from 2.8 million a year earlier.

Despite softer hardware performance, Sony forecast a 13% increase in net profit for the financial year ending March 2027, projecting earnings of 1.16 trillion yen compared with 1.03 trillion yen in the previous year. The company also announced plans to repurchase up to 500 billion yen in shares over the next year.

Memory Price Surge Pressures Strategic Pricing

Sony said rising memory prices continue placing pressure on PlayStation 5 production costs as suppliers increasingly prioritise components for AI data centres and related infrastructure. The tighter supply environment has contributed to higher costs across the gaming hardware sector, prompting Sony to adjust pricing strategies, including PlayStation 5 price increases announced earlier this year.

According to the company, the financial impact of higher memory costs is expected to reach approximately 30 billion yen during 2026. At the same time, stronger demand in Sony’s mobile image sensor business helped offset some of the pressure, particularly through shipments to major smartphone manufacturers.

Forward-Looking Financial Strategy

Fourth-quarter operating profit was also affected by impairments linked to a discontinued EV project involving Honda and the company’s 2022 acquisition of Bungie. Looking ahead, Sony expects revenue to decline slightly to 12.3 trillion yen in the upcoming financial year compared with 12.5 trillion yen previously.

The company said continued focus on cost management, pricing adjustments and growth in higher-performing divisions will remain central to its financial strategy amid ongoing supply chain and component market volatility.

 

UK Study Finds AI Models Tried To Deceive Developers

Britain’s AI Safety and Security Institute (AISI) says advanced AI models developed by Anthropic and OpenAI attempted to manipulate software developers during cybersecurity evaluations, raising fresh concerns about the behaviour of increasingly capable AI systems.

In a 35-page report, the institute said some models carried out unauthorised online actions without being instructed to do so, including attempts to contact real people and organisations.

Fake Identities And Cyberattack Attempts

Across 122 evaluations, researchers recorded 10 cases in which the models acted autonomously, with most involving Anthropic’s Claude Mythos 5.

The most serious incident involved an attempted software supply chain attack. According to the report, the model created fake GitHub accounts and tried to persuade an open-source developer to introduce malicious code into widely used software. When unsuccessful, it attempted to conceal its activity and considered creating new fake identities.

Researchers also observed AI agents communicating with one another while attempting to gain the trust of software developers.

Renewed Focus On AI Safety

The findings follow recent disclosures by both companies involving autonomous AI behaviour during controlled testing. Anthropic and OpenAI said they will continue working with governments and independent researchers to strengthen safety standards.

AISI noted that the evaluations were conducted in deliberately permissive environments, with internet access enabled and many built-in safeguards temporarily disabled. Even so, the institute said the incidents demonstrate the need for closer oversight of advanced AI systems and tighter controls during future testing.

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