Sony Group is doubling its entertainment-first business strategy while preparing for potential headwinds of Trump administration tariffs, President and CEO Hiroki Totoki revealed in a corporate strategy speech on Wednesday.

The speech is the first time since Totoki promoted to the position in January, after the group's financial results for the fourth quarter of 2025 were released.

In recent years, the Japanese conglomerate has focused on entertainment activities, and its gaming, music, movie and TV businesses now account for about 61% of combined sales. Totoki puts “the power of entertainment moving people and the power to fill the world with emotions” as the key driver behind the strategic hub.

Talking about the company’s long-term creative entertainment vision, Totoki outlines the “plan to create infinite reality with creators, partners and employees” through the synergy between Sony’s various business units.

In terms of gaming, as the growth of the installation foundation of PlayStation 5 continues to expand, Sony expects "revenue and profit of network business to grow steadily due to the growth of monthly active users, and due to the growth of monthly active users." The company plans to maximize the average revenue per user through "personalization and pricing optimization."

In the fiscal year, Sony expects “studio businesses have further growth through a wider user base, driven by single-player champions of narratives such as “Yote of Yote” and “Marathon,” explains Totoki. The executive also highlighted the continued success of the “Catalogue titles that have been launched and ongoing live service champions 'Hell Divers II' and 'Destiny 2.'.

In the music section, Sony remains “focused on strengthening our position in the global music market while continuing to increase profitability” and plans to continue to expand through “deliberate acquisitions throughout our business and in high-growth markets such as Latin America, India and other Asian countries.” ”

One of Sony’s special focus is animation, which Tottoki described as “the main leader of the growth of the Sony Group in many of our businesses.” The market size of the animation industry is "promising to continue to grow at the CAGR (CAGR) at the high unit figures from 2023 to 2030," the animation streaming market specifically expects "a CAGR of 10% by 2030."

The company's Crunchyroll streaming service has grown to over 17 million paid members and has integrated with the PlayStation Network to simplify subscription registration.

On the film side, Sony Pictures Entertainment “continues to rebuild” after “COVID-19 and strike-related closures” face industry-wide challenges. The studio’s upcoming slate includes 2026’s Spider-Man: A New Day, as well as a new film adaptation of Capcom’s “Resident Evil” and another “Jumanji.” The future tentacles include the final film in 2027’s Spider-Man Animation Trilogy and four Beetle movies from 2028.

Totoki highlighted Sony Pictures Entertainment as “the central hub for many synergies and collaborative cross-company collaborations”, the center of Sony’s strategy, pointing out PlayStation Productions’ adaptation of the “Unknown” and “Last last of Uncoper” games, “currently with more than 10 titles in production.”

In a frank Q&A session after the speech, Totoki addressed concerns about potential Trump administration tariffs and showed that Sony has calculated a JPY of 100 billion (about $700 million) of JPY for its hardware business.

When asked about the possibility of moving more manufacturing to the U.S., Totoki admitted that for hardware like gaming consoles, “the hardware can certainly be produced locally. I think it would be an effective strategy.” However, he noted that the PlayStation 5 gaming consoles are “made in many areas” and that they need to “consider moving forward” decisions about U.S. production.

Regarding filmmaking, Totoki mentioned: "Mr. Trump said he would have 100% tariffs on films that were not made (and in the United States)." But added that the policy "is obviously still under trial."

“These are some of the actions we need to consider about entertainment – ​​for example, if you shoot a movie of course made in various fields and put it together as a story. And there are some pictures shot outside of the United States because Hollywood costs have risen… shocking…”,” Totoki said. “So, it’s not a problem in the United States, but a problem in California. So for content, we don't know how it will develop, we're paying close attention to the trend. ”