A Year Marked by Record-High Performance and Continuing Evolution of Sony's Business Portfolio

From the outset, Totoki acknowledged the past year as a truly exceptional year for Sony, pointing to the year's record-high performance. He then stated that Sony has also continued evolving its business portfolio to seek opportunities for growth and address emerging challenges. Clarifying Sony's strategic focus on entertainment, IP, content creation, and real-time creation technology under the Fifth Mid-Range Plan launched in FY2024, he also reviewed Sony's efforts to support creators through technology, deliver new experiences across both physical and digital spaces, and maximize the value of IP under its long-term Creative Entertainment Vision.

He went on to note that "Sony's Purpose - to fill the world with emotion through creativity and technology - is at the heart of our Creative Entertainment Vision, and is driving successes and potential growth opportunities across our Sony Group businesses," proceeding then to give overviews on each of Sony's business segments:

In Game & Network Services (G&NS), Totoki emphasized that the PlayStation platform now hosts over 125 million active users around the world, while Sony's Music businesses have enjoyed tremendous growth through their efforts to build strong relationships with an expanding roster of outstanding talent, streaming platforms, and audiences. Simultaneously, Pictures serves as a "hub" for cross-company collaborations, including film and TV adaptations of game IP. In Entertainment, Technology & Services (ET&S), Totoki explained how Sony is expanding its sports business and supporting creators in content production, while in Imaging & Sensing Solutions (I&SS), he cited how the evolution of Sony's image sensors supports creativity at its core.

Totoki also highlighted Anime as a key growth area, pointing out the strengths created by Sony's collaborative synergies built with both Sony Group companies and strategic partners, which span production, fan engagement, marketing, and global distribution. As examples of the rapid worldwide growth of anime, he cited the global success of Demon Slayer: Kimetsu no Yaiba Infinity Castle and Crunchyroll's continued growth, with the service surpassing 21 million paid subscribers worldwide as of the end of March 2026. Through initiatives such as The 2026 Crunchyroll Anime Awards and the first-ever Crunchyroll Anime Future Forum to be held this fall in New York, Totoki underscored Sony's strategy of further strengthening relationships with fans and with industry members.

Accelerating Entertainment Growth through Targeted Investments

During the current Mid-Range Plan period, Sony has continued to evolve its business portfolio while investing in areas with strong growth potential. Totoki raised several examples of such investments, including the strengthening of Sony's position in anime through partnerships with Bandai Namco Holdings; Sony's increased ownership in Peanuts Holdings; and investments in music IP, such as the partnership between Sony Music Group and GIC. He added that "Together, these strategic decisions reflect the ongoing evolution of Sony Group's business direction towards entertainment, IP and creation technology," sharing that entertainment business now accounts for 67% of Sony Group's consolidated sales.

At the same time, Totoki made sure to touch on how Sony has also made various strategic directional shifts in order to strengthen its positioning for future growth.

Creating New Value with AI and Opening the Door to Sony's Future through Adaptability

Totoki then emphasized the relationship between Sony and AI, stating that "When we think about further growth at Sony Group, AI is one of the most important themes for us to consider." He further elaborated that "AI is a powerful tool - but it is not a replacement for artists or creators. It is an amplifier of human imagination and a catalyst for new possibilities," underscoring that AI does not replace human imagination and creativity.

Totoki also noted that AI brings new opportunities to the world of entertainment by not only overcoming constraints of cost and time, but also by supporting the advancement of more innovative and ambitious projects. He expounded on AI's potential to create a major opportunity for PlayStation as a Platform to connect more fans with more games, further strengthening its value.

Totoki subsequently explained that Sony has invested more than $50 million to date in applying AI across production and other workflows in the Pictures business, while in the Music business it is actively pursuing an industry-wide standard to label AI content in order to respect intellectual property rights and ensure transparency for consumers. He also revealed that Sony is moving forward with a pilot initiative using generative AI and other cutting-edge technologies with Bandai Namco Holdings, identifying how to concretely address the shortcomings of generative AI based on an understanding of its strengths and weaknesses. Totoki said that Sony hopes to contribute to the overall growth of the industry through such collaborations and by combining Sony's expertise in audio, video processing, spatial, and CG technology with generative AI to create a safe and secure production environment while maximizing creators' artistic sensibility. Following Totoki's remarks, President and CEO of Sony Interactive Entertainment Hideaki Nishino spoke on specific initiatives in Gaming. He shared examples of how AI is being used, including automation and raising productivity in content creation, creating and improving the quality of gaming experiences, and realizing better personalization and recommendations.

Totoki then also touched on the I&SS business. He emphasized that Sony's strength in image sensors lies in its expertise acquired within the analog domain spanning design, development, and manufacturing, together with its comprehensive ability to integrate and refine these elements as a whole - a strength difficult for other companies to replicate. He also revealed plans to further improve sensor performance within Sony's core mobile image sensor business through higher density enabled by its proprietary process and stacking technologies. In addition, Totoki announced that Sony signed a non-binding memorandum of understanding (MOU) with Taiwan Semiconductor Manufacturing Company (TSMC) to form a strategic partnership for the development and manufacturing of next-generation image sensors. He stated that the two companies intend to establish a joint venture under this partnership, with Sony as the majority and controlling shareholder, and are conducting studies toward setting up development and production lines utilizing Sony's newly constructed fab in Koshi City, Kumamoto Prefecture.

Finally, Totoki addressed how Sony is responding to technological and geopolitical disruption. Looking ahead, he shared a positive outlook on Sony's business environment while noting that, in an increasingly uncertain environment, adaptability will be critically important. Totoki concluded by saying that "We cannot rely on assumptions that have supported us in the past, and we remain ready to pursue innovative ways of finding growth in the future."

CFO Lin Tao then presented details on Sony's consolidated financial results for fiscal year 2025. For more information, including Totoki's presentation on corporate strategy and the consolidated financial results for fiscal year 2025, please visit Sony's Investor Relations website.