Sony Group has raised its full-year profit outlook after reporting a stronger-than-expected second quarter, fueled by robust growth in its music publishing and imaging sensor businesses - two divisions that have increasingly outperformed the company’s flagship gaming unit.

Operating profit for the quarter ending September 30 rose to ¥309.7 billion ($2 billion), beating analyst forecasts of ¥280 billion. Sony cited stronger licensing income from global music streaming and higher demand for image sensors used in smartphones and automotive systems.

“This quarter underscores the diversification of Sony’s revenue base,” said Hiroki Totoki, Sony Group president and COO. “Our entertainment and technology businesses continue to show structural resilience.”

Music and Imaging Lead the Charge

Sony’s music segment, which includes Sony Music Entertainment and Sony Music Publishing, saw double-digit revenue growth driven by hits from K-pop and global streaming catalogs. The company also noted strong performance from the soundtrack of KPop Demon Hunters, the animated feature that has become a cultural hit across Asia.

In the imaging and sensing solutions division, Sony benefited from increased orders for its CMOS sensors, used in both smartphones and autonomous vehicles. Analysts said Sony’s early investments in automotive imaging are beginning to pay off as next-generation driver-assistance systems expand.

“The imaging business is quietly becoming Sony’s profit anchor,” said Hideki Yasuda, senior analyst at Toyo Securities. “Apple, Samsung, and Chinese automakers are all deepening their reliance on Sony’s sensors.”

Gaming and Electronics Lag

While PlayStation 5 sales remain steady, the company acknowledged softer-than-expected gaming revenue due to slower hardware sales and fewer blockbuster releases compared with last year.

Sony’s gaming division brought in ¥890 billion in revenue for the quarter, a slight decline year-over-year. The company said it expects improvement in the holiday quarter with the release of major titles and expanded PlayStation Plus subscriptions.

The electronics unit, which includes televisions and audio devices, reported modest gains amid continued component cost pressures.

“Gaming remains critical to Sony’s ecosystem, but the growth story has shifted,” said Serkan Toto, CEO of Kantan Games. “Music and imaging are driving margins now, not consoles.”

Revised Outlook

Sony now expects full-year operating profit of ¥1.36 trillion ($8.8 billion) for fiscal 2025, up from its previous forecast of ¥1.28 trillion. The company left its revenue guidance unchanged at ¥12.2 trillion, reflecting stable global demand despite economic headwinds in key markets.

Chief Financial Officer Hiroki Totoki said the company will continue investing in AI-powered tools for music analytics and content production, as well as expanded capacity for sensor manufacturing in Japan and Thailand.

The Bigger Picture

Sony’s latest earnings highlight a strategic shift underway for one of Japan’s most iconic conglomerates — from reliance on cyclical electronics to a model built on intellectual property and precision technology.

Its music business is now the company’s most profitable segment, while its image sensors dominate roughly 45% of the global market, according to data from Omdia.

As streaming, imaging, and content licensing converge, Sony appears to be positioning itself as a hybrid between a tech platform and a media empire.

“Sony has become less of a gadget maker and more of a content and components powerhouse,” said Yasuda. “It’s the Apple of both art and optics.”

The Takeaway

While gaming’s growth slows, Sony’s diversification strategy is paying off. The company’s ability to extract value from music IP, entertainment franchises, and semiconductor technology has allowed it to outperform expectations — and may redefine what a 21st-century entertainment giant looks like.

“In this environment,” Totoki said, “the companies that control creativity and the chips that power it will define the future.”