Sony Group Corp. reported a record annual profit of 1.14 trillion yen ($7.8 billion) for the fiscal year ending March, marking an 18% rise, driven by strong performances in its music, movies, and gaming sectors. The company's success was attributed to robust sales in these entertainment segments, despite a slight decrease in overall annual sales to 12.957 trillion yen ($88 billion). The company's music operations, including recordings, streaming services, and music for games, performed well globally, with top-selling projects like SZA's 'SOS Deluxe: LANA' and Kenshi Yonezu's 'Lost Corner' in Japan. Sony's movie division, led by CEO Hiroki Totoki, also saw success with films such as 'Venom: The Last Dance', 'Bad Boys: Ride or Die', upcoming Spider-Man films, and biopics about The Beatles, contributing to the record profits. Animation remains a growth driver, centered around the popular anime streaming service Crunchyroll. In the gaming sector, Sony sold 303.3 million games during the fiscal year, marking a 6% increase. The PlayStation 5 (PS5) has reached 77.8 million units sold, closely matching the sales pace of its predecessor, the PS4, with 9.5 million units sold over the holiday period. However, first-party game sales have declined, with the last release being Astro Bot in September 2024, while third-party game sales have risen, driven by titles like Indiana Jones and the Great Circle. Sony is also enhancing its gaming offerings with PS5 Pro upgrades for titles like Returnal, and fans can look forward to upcoming games such as Death Stranding 2 and Ghost of Yotei. The GTA 6 trailer was captured entirely in-game on PS5. Sony announced a $1.7 billion share buyback, which led to a 3.6% rise in its stock price. The company also disclosed plans for a partial spinoff of its financial business, intending to distribute over 80% of the spinoff's common stock as dividends to Sony Group stockholders. Looking ahead, Sony anticipates a challenging fiscal year due to U.S. President Donald Trump's trade policies, including tariffs on Chinese goods. The company forecasts a 13% drop in profit to 930 billion yen ($6.3 billion) for the fiscal year ending March 2026, with expected sales of 11.7 trillion yen ($80 billion). For the January-March quarter, Sony posted a profit of 197.7 billion yen ($1.3 billion) and sales of 2.6 trillion yen ($17.7 billion). Sony plans to mitigate the impact of these tariffs, estimating a 10% hit to its operating profit. The company's stocks rebounded to finish 3.7% higher after the financial results were announced.