Sony Reports ¥120.1B Impairment Loss Due to Bungie's Underperformance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy SONY?
In its FY25 report, Sony reported a 120.1B yen, or roughly $765M, impairment loss due to underperformance of "Destiny" and "Marathon" studio Bungie during the last financial year. "In our studio business, earnings from Bungie's title portfolio did not reach our expectations, so we downwardly revised our business plan and impaired the full amount of the fixed assets related to Bungie except for goodwill," the company said, noting that player reception to "Marathon" is strong. "Going forward, we aim to improve the performance of the game by working to retain highly engaged core users through the introduction of additional content, further improvements in the gameplay experience and expansion of the user base," Sony added. The Fly notes that Sony acquired Bungie in 2022 in a deal valued at $3.6B.
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Analyst Views on SONY
Wall Street analysts forecast SONY stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 19.890
Low
34.00
Averages
34.00
High
34.00
Current: 19.890
Low
34.00
Averages
34.00
High
34.00
About SONY
Sony Group Corp is a Japan-based company engaged in the games & network services (G&NS), music, movies, entertainment technology & services (ET&S), imaging & sensing solutions (I&SS) and other businesses. It has seven business segments. G&NS segment is involved in network service business, the manufacture and sale of home video game consoles and software. The Music segment mainly includes music production, music publishing and video media platform businesses. The Movies segment mainly includes film production, television program production and media network businesses. The ET&S field mainly includes the television business, audio, video business, still image, video camera business, smartphone business and Internet-related service business. The I&SS segment mainly includes the image sensor business. The Financial segment is involved in the insurance business and banking business. The Other segment consists of activities such as disc manufacturing business and recording media business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- New Facility Construction: The joint venture will set up development and production lines at Sony's newly constructed fab in Koshi City, Kumamoto Prefecture, which is expected to enhance production capacity and meet the growing market demand for high-performance image sensors, thereby strengthening Sony's competitive position globally.
- Investment Plans: The companies are discussing potential investments by the joint venture and considering phased capital investments by Sony in its existing Nagasaki plant based on market demand, which will help improve production efficiency and drive technological innovation.
- AI Application Exploration: This partnership also aims to explore emerging opportunities in physical AI applications, such as automotive and robotics, indicating a forward-looking strategy by Sony and TSMC to capitalize on rapidly evolving market trends and capture growth opportunities.
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- Future Outlook: Sony forecasts a 13% increase in net profit for FY2027 to 1.16 trillion yen, demonstrating confidence in future profitability, even as it anticipates a slight revenue decline to 12.3 trillion yen, highlighting market environment challenges.
- Share Buyback Plan: Sony announced a share buyback of up to 500 billion yen over the next year, aimed at enhancing shareholder value, despite its stock price having fallen about 23% since early 2026, indicating market caution regarding its long-term growth potential.
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