• Sony reports a 8% year-over-year increase in revenue to $19.4 billion

• While the film division had a soft box office quarter with “Goat” as its only $100 million-plus hit grosser, Playstation remained a strong moneymaker with releases like “Resident Evil: Requiem.”

• The earnings arrive one month after Sony Pictures Entertainment laid off hundreds of employees as it refocuses around top moneymaking IP like Playstation, Crunchyroll, and game shows like “Jeopardy!”

Sony reported a 8% year-over-year increase in revenue for the first calendar quarter of 2026 thanks to strong hardware and video game sales, though the studio’s entertainment division continued to lag behind.

The Japanese conglomerate reported revenue for the fiscal fourth quarter of 3 trillion yen, or $19.4 billion. Quarterly profits, however, fell more than 55% to 93 billion yen, or $595.2 million.

Sony Pictures Entertainment, meanwhile, saw a 22% year-over-year drop in operating income to 41.5 billion, or $264 million, as revenue rose 10% to $3 billion. Its results were affected by the wind down of Pixomondo, its VFX and virtual production company acquired in 2022.

While the studio had a modest theatrical success with the original animated film “Goat,” which made $192 million worldwide, the horror sequel “28 Years Later: The Bone Temple” struggled with just $58.5 million, less than half the global total of last year’s “28 Years Later.”

Excluding the Pixomondo wind down, however, the division’s operating income rose 24% to 473 billion yen, or $439 million.

The earnings come one month after SPE announced that it would do a major restructuring to focus the company around IP with the greatest growth potential, resulting in hundreds of layoffs. Film and TV adaptations of Playstation games will become a top priority, as will the company’s growing anime wing Crunchyroll and its consolidated game show division, which includes the long-running “Jeopardy!” and “Wheel of Fortune.”

Much of its operating income in the quarter was driven by strength in its games business, although that also saw a steep decline, while its music division saw big gains in the period.