In the meeting, the financial performance of Sony Group in the first quarter of this fiscal year was introduced, including significant growth in sales and operating profit, as well as the upward revision of the annual financial targets. It was specifically mentioned about the plan to list the financial services business separately, and discussions were held on the potential impact of the additional tariffs imposed by the United States on the business and the strategies to address it.

PlayStation user base continues to grow, and content and service revenue is expected to increase by 50%, benefiting from the expansion of the user base and increased per capita consumption. The music business is being driven by streaming and mobile games, with sales and operating income reaching new highs. In the visual media sector, the global release plan for the movie "Demon Slayer" is progressing, and is expected to bring huge commercial success.

In the first quarter of the 2025 fiscal year, despite a decrease in TV sales and operational revenue, TV production revenue, Etns, and ISS departments performed strongly, mainly benefiting from the growth in sensor sales and expansion in content creation. The company has established a strategic partnership with Panago to strengthen cooperation in the animation and comic fields, and plans to create new collaborative experiences in the experiential entertainment sector. Faced with uncertainties such as the impact of additional tariffs in the United States, the company expects to continue adjusting business operations to respond to changes and risks starting in the second quarter of the 2025 fiscal year.

The quarterly financial results of Sony Financial Group were reported, including explanations for the increase and decrease in adjusted net profit, as well as measures taken in response to rising interest rates such as bond sales and reinsurance arrangements. Additionally, progress in preparations for listing, stock repurchase plans, and dividend policies were disclosed, with commitments to strive for financial goals, strengthen capital base, and enhance shareholder value.

After the media waited, the Q&A session officially began, with senior management, including the heads of finance, investor relations, and business planning, ready to take questions. The media was invited to use the 'raise hand' button on the Webex interface to ask up to two questions.

The conversation centered around the tariff adjustments the United States has implemented on China, with special focus on the semiconductor industry. Originally expected to impact $10 billion, the tariffs have now been reduced to $7 billion, mainly due to the postponement or adjustment of tariffs on products such as semiconductors, 4G equipment, and game consoles. In response to the risk of the United States imposing a 100% tariff on semiconductors, a spokesperson pointed out that based on the tariff rates officially announced on August 1st, the company has evaluated and included them in their forecasting model, emphasizing that direct exports of semiconductor components to the United States are limited, and they will continue to evaluate both direct and indirect impacts.

Discussed the box office performances of animated films "Demon Slayer" and "National Treasure" exceeding expectations, especially the success of "National Treasure" as a new IP. However, these successes have limited overall financial impact and are already included in financial forecasts. The company is currently evaluating investments in IP content, and some investments may lead to an upward revision of financial forecasts, but specific adjustments have not yet been determined.

The conversation discussed the transformation from hardware-centered business to entertainment creation, such as music streaming and gaming communities. Through acquisition and expanded business operations, stability and profitability have been improved. It particularly mentions the growth of music publishing and catalogs, as well as the community-based transformation of the gaming business. These strategies together have led to an overall upward correction in the business.

Discussed the risks of Apple potentially establishing semiconductor production facilities in the United States, as well as the recall issues caused by production defects in Xperia smartphones. Proposed possible future strategies for the semiconductor business; expressed apologies for the inconvenience to users regarding the smartphone business, and explained the remedial measures that have been taken, emphasizing the determination to quality management and sustainable business development.

Discussed that the United States does not have the capability to produce semiconductors in the short term, the company is committed to providing high-quality products to enhance competitiveness. Meanwhile, it was analyzed that although the US economy has slowed down, it has not deteriorated, and the company's business is minimally affected by the economic impact, particularly the entertainment business, which has already been included in the current forecasts.

Discussed the plan to deepen cooperation with partners after investment, including the utilization of game and animation IP, community expansion, and technological integration, placing particular emphasis on achievable collaboration results in the short term and long-term vision, as well as regular evaluation of investment returns.

A Q&A session for investors and analysts is about to begin. The host announced the participation method and rules, inviting participants to ask questions by clicking the 'Raise Hand' button on the Webex interface, ensuring that each participant has the opportunity to ask up to two questions. The meeting officially enters the Q&A session.

The conversation revolves around optimizing financial assets and profit strategies in the gaming industry, discussing in detail the progress of asset optimization in the financial sector and changes in the market environment. It also includes profit expectations, risk assessment, and governance structure of the game marathon project, with special attention to Bungie's self-management and potential risks of not releasing games.

The conversation mainly revolves around Sony improving its financial situation through pre-sale of assets, as well as the progress of development and possible release plans for the Marathon game. Sony has successfully boosted ESR through asset sales, preventing its decline, and expects the Marathon game to be released within this fiscal year, but the specific timing has not been determined. In addition, the Bungie studio is gradually integrating into PlayStation Studio, with its independence diminishing.

The conversation explored the reasons for the increase in the profit margin of the game, including the contributions of third-party software and online services, as well as the stability of first-party content. At the same time, adjustments to the strategy of marathon games were discussed, emphasizing the long-term transformation and existing issues of live streaming service games, planning to reduce waste and improve efficiency.

The discussion in the dialogue covered the negative impact of tariffs on business in the first quarter, which has been taken into account by various departments, and the impact is gradually decreasing. At the same time, adjustments have been made to the fourth quarter financial forecast for the gaming and music sectors, indicating that the performance of the gaming sector is better than expected but the adjusted forecast is more conservative. The music sector, such as FGO, is becoming a profit-driving factor, and the overall forecast is more cautious.

The discussion on the Q1 performance, which already reflects the full-year impact of tariffs, revealed that the company's actual performance is progressing at the corporate level, but is difficult to monitor directly at headquarters. The upward revision of annual profit forecast by 20 billion is attributed to the positive impact of network services, foreign exchange, and the delayed launch of games in the first year. It was emphasized that the impact of tariffs will intensify and uncertainties will increase from Q2 onwards, prompting a cautious approach. In the gaming industry, it was announced that the demonstration transfer of supply chains has been completed, with game console production for the US market being moved out of China. Price strategies will be flexibly decided based on factors such as annual profits and consumer acceptance.

At the financial results press conference of Sony Group, facing the possibility of increased procurement from the United States by major customers in North America, Sony admitted that it had partially anticipated this situation and had taken some measures to address it. However, as the specific details are not yet fully understood, Sony stated that it needs time for internal discussions and to assess the accuracy of the reports. Sony emphasized that the impact of this change on product competitiveness and potential market risks will be addressed through long-term capital expenditure plans and prepared measures to ensure the company's market position is not affected.