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    Munakata san • Goldman Sachs

    Munakata san's questions to Sony Group Corp (SONY) leadership

    Munakata san's questions to Sony Group Corp (SONY) leadership • Q1 2025

    Question

    Munakata san from Goldman Sachs asked for a detailed breakdown of the significant margin improvement in the Game & Network Services (G&NS) segment, its sustainability amid future tariff impacts, and the current status of the live service game strategy following the postponement of 'Marathon'.

    Answer

    Lin Tao, Corporate Executive Officer and CFO, attributed the Q1 margin improvement primarily to strong third-party software sales, network service revenue, and lower costs. She stated that future margin growth will be structurally driven by network services and first-party content. Regarding live service games, she acknowledged recent postponements but highlighted that the category has grown from nearly nonexistent five years ago to contributing about 40% of first-party software revenue in Q1.

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    Munakata san's questions to Sony Group Corp (SONY) leadership • Q1 2025

    Question

    Munakata san from Goldman Sachs inquired about the drivers behind the Game & Network Services segment's significant margin improvement in Q1, its sustainability given future tariff impacts, and the current status and challenges of Sony's live service game strategy following the Marathon delay.

    Answer

    CFO Lin Tao attributed the Q1 game margin improvement to strong third-party software sales, network service revenue, and lower costs. She noted that future margin sustainability depends on the growth of network services and first-party content. Regarding live service games, she acknowledged recent postponements but emphasized the strategy's long-term progress, with live service titles contributing about 40% of first-party revenue in the quarter.

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