Sony has reported unexpected profit growth driven by robust demand in its entertainment sector, following a challenging holiday season. According to Jin10, the company has increased its annual operating profit forecast to 1.54 trillion yen (approximately $9.8 billion), up from the previous estimate of 1.43 trillion yen. In the quarter ending December, Sony recorded an operating profit of 515 billion yen, surpassing analysts' average expectation of 459.6 billion yen, with quarterly sales reaching 3.71 trillion yen. The diverse content portfolio helped offset the profit pressure caused by a shortage of storage chips. Currently, the consumer electronics industry is facing rising costs due to soaring storage chip prices, affecting products from digital cameras and smartphones to gaming consoles. Meanwhile, competitor Nintendo's new Switch 2 gaming console has introduced strong competition, becoming the best-selling gaming device in the crucial U.S. market for the year. In the hardware sector, the manufacturer of PlayStation 5 continues to face an uncertain outlook, primarily due to rising memory prices and heavy U.S. tariffs. Sony's stock price has fallen approximately 30% from its peak in November last year.