Yukio Yoshida

Yukio Yoshida inquired about the intent behind separating the TV business into a joint venture with TCL as part of ET&S structural reform, the scope of the home entertainment business covered, and the current status of the smartphone business regarding structural reform and external collaboration. He also asked about the impact of surging memory prices on the PS5, including potential price increases, successor timing, and assumptions for the next fiscal year.

Answer

Lin Tao, Corporate Executive Officer and CFO, stated the JV with TCL for home entertainment (including TV) is part of an ongoing portfolio review to optimize for changing business environments, leveraging Sony's assets with TCL's strengths for growth. Naoya Horii, Senior VP of Corporate Planning and Control, clarified the scope includes TV and home audio, with details still under discussion. Ms. Tao confirmed no plans for external collaboration for smartphones. Regarding PS5, Ms. Tao noted its robust 92 million unit install base and emphasized that software content and network services, unaffected by memory prices, will continue to contribute significantly. While new hardware sales might be impacted by cost increases, its late lifecycle allows for flexible options.