Group 1: Subscription Economy Overview - Subscription-based services provide companies with a steady and recurring revenue stream, reducing volatility compared to hardware sales [1] - These services generate predictable income, enhancing financial stability and fostering long-term customer engagement [1] Group 2: Apple Inc. Services Segment - Apple Inc. exemplifies the subscription trend with its Services segment, which includes the App Store, Apple Music, iCloud, Apple TV+, and Apple Arcade & Fitness+ [2] - The Services segment has grown from $78.1 billion in 2022 to $96.2 billion in 2024, reflecting a 13% year-over-year increase [2] - This segment boasts high gross margins of 73.9%, significantly higher than the 37.2% margins of its hardware business, making it a key driver of overall profitability [2] Group 3: Netflix and Sony in Subscription Market - Netflix remains the dominant player in subscription-based streaming with over 250 million subscribers and reported $10.25 billion in revenues for Q4 2024, marking a 16% year-over-year growth [4] - Sony's PlayStation Plus saw a 20% revenue increase in Q3 of fiscal year 2024, driven by price adjustments and a shift toward higher-tier subscriptions [6] Group 4: Integration with Apple - Netflix benefits from Apple's App Store ecosystem, allowing easy access for iOS users, although it has moved away from Apple's in-app payment system [5] - Sony collaborates with Apple through compatible PlayStation controllers and content licensing from Sony Pictures for Apple TV+, enhancing both companies' ecosystems [7] Group 5: Cross-Company Dynamics - Netflix and Sony are interconnected with Apple's growth in services through various integrations, with Apple's ecosystem facilitating subscriber acquisition and retention for both companies [8] - The collaboration among Apple, Netflix, and Sony encourages consumers to embrace paid digital entertainment, driving industry growth [8] Group 6: Future Growth Potential - Subscription-based services are identified as a high-margin and high-growth business model, with companies like Netflix and Sony positioned to benefit from the ongoing shift toward digital entertainment and cloud-based services [10]

Group 1 - The House Edge is recognized as a unique marketplace service in the casino, gaming, and online sports betting sectors, providing superior returns compared to standard analyst guidance [1][2] - Howard Jay Klein, with 30 years of experience in major casino operations, leads The House Edge and focuses on actionable research for investments in the casino and entertainment industries [2] - The intelligence network of The House Edge spans various levels within the US gambling and entertainment sectors, enhancing the quality of insights and investment ideas [2] Group 2 - The article emphasizes the importance of management quality in informing investment strategies, highlighting a value investment approach [2]

Core Viewpoint - Sony Group Corporation has experienced an upward trend since last summer, leading to a share valuation that has surpassed the trading range it was confined to for the past two years [1]. Group 1 - The recent movement in Sony's shares indicates a significant shift in market perception and valuation [1]. - The company has successfully broken out of a two-year trading range, suggesting potential for further growth [1].

Core Insights - Sony's stock experienced a significant increase, rising by 6% during trading, with a peak of 9.4% earlier in the day [1] - The company reported third-quarter results for fiscal 2024 that exceeded analyst expectations, prompting an upward revision of its full-year guidance [2] Financial Performance - Sony achieved earnings per share of 61.82 yen ($0.41) and revenue of 4.4 trillion yen ($28.97 billion) for the third quarter, surpassing Wall Street's forecast of $0.30 per share on sales of $23.78 billion [3] - Revenue grew approximately 18% year over year, significantly outperforming expectations, with the gaming and network services division seeing a 16% year-over-year increase [4] Product Sales - The company sold 9.5 million PlayStation 5 consoles during the holiday quarter, an increase from 8.2 million units in the same period last year, contributing to the raised sales targets [5] Future Outlook - Following the strong third-quarter performance, Sony raised its fiscal 2024 sales target to about $86 billion, reflecting a 4% increase from previous guidance, and increased its operating profit target to approximately $8.6 billion, up 2% [6] - The gaming division remains the primary growth driver, with improved sales for the PlayStation 5 and third-party games indicating a positive near-term outlook [7] - The longevity of the PlayStation 5 will be crucial for the company's performance in the coming years, with forecasts suggesting a potential launch of PlayStation 6 in fall 2026 [8]

Core Viewpoint - Sony Group Corporation reported strong financial results for the third quarter of fiscal 2024, with notable increases in net income and total revenues, driven by growth in several key segments [1][2]. Financial Performance - The net income per share on a GAAP basis was ¥61.82 (41 cents), an increase from ¥58.96 in the same quarter last year, surpassing the Zacks Consensus Estimate of 29 cents [1]. - Adjusted net income rose to ¥373.7 billion from ¥363.9 billion year-over-year [1]. - Total revenues increased by 18% year-over-year to ¥4,409.6 billion ($29 billion), exceeding the Zacks Consensus Estimate of $24.3 billion [2]. Segment Performance - Game & Network Services (G&NS) sales grew by 16% year-over-year to ¥1,682.3 billion, driven by higher hardware revenues and increased non-first-party game software sales [5]. - Music sales improved by 14% year-over-year to ¥481.7 billion, supported by higher revenues from streaming services [6]. - Pictures sales increased by 9% year-over-year to ¥398.2 billion, aided by strong theatrical releases and subscriber growth for Crunchyroll [7]. - Entertainment, Technology & Services (ET&S) sales decreased by 4% year-over-year to ¥704.5 billion due to lower television sales [8]. - Imaging & Sensing Solutions (I&SS) sales remained flat at ¥500.9 billion, impacted by soft sales of image sensors [10]. - Financial Services sales surged by 130% year-over-year to ¥718.5 billion, driven by significant revenue growth at Sony Life [11]. - All Other sales rose by 8% to ¥25.8 billion, although operating loss was reported [12]. Outlook and Guidance - Sony revised its fiscal year 2025 sales forecast to ¥13,200 billion, up from ¥12,710 billion, primarily due to growth in Financial Services and G&NS [3]. - Updated revenue expectations for I&SS and Music segments are ¥1,790 billion each, with net income now estimated at ¥1,080 billion [15]. Stock Performance - Shares of Sony increased by 5% in premarket trading, with a 16.6% gain over the past year, outperforming the Audio Video Production industry, which rose by 12.9% [4].

Core Insights - Sony reported a 3% increase in profit for the October-December period, totaling 373.7 billion yen ($2.4 billion), up from 364 billion yen [1] - The company raised its full-year profit forecast to 1.08 trillion yen ($7 billion) from the previous estimate of 980 billion yen ($6.3 billion), marking an 11% improvement over the prior fiscal year [3] Financial Performance - Quarterly sales increased by 18% to 4.4 trillion yen ($29 billion), driven by strong results in financial services, games, and music operations [2] - For the nine-month period, sales rose by 8% to 10.3 trillion yen ($67 billion) [2] - Profit for the April-December period saw a 21% increase, reaching 943.9 billion yen ($6 billion), up from 781.6 billion yen [2] Market Position - The PlayStation 5 game console is now in its fifth year since launch, with no announcements regarding a successor [4]

Q3 FY2024 Consolidated Financial Results (Three months ended December 31, 2024) February 13, 2025 Sony Group Corporation Q3 FY2024 Consolidated Results | | | Sony without Financial Services | | | Consolidated | | (Bln Yen) | | --- | --- | --- | --- | --- | --- | --- | --- | | | Q3 FY23 | Q3 FY24 | Change | Q3 FY23 | Q3 FY24 | Change | | | Sales*1 | 3,439.4 | 3,695.7 | +256.3 （+7%） | 3,747.5 | 4,409.6 | +662.0 （+18%） | | | Operating income | 386.1 | 423.0 | +36.9 | | | +6.0 | | | | | | （+10%） | 463.3 | 469.3 ...

Financial Data and Key Metrics Changes - Consolidated sales for the quarter reached ¥3,747.5 billion, a significant increase of 22% year-on-year, marking a record high for the quarter [23] - Consolidated operating income increased by ¥41.8 billion year-on-year to ¥463.3 billion, the second highest quarterly level [23] - Net income rose by ¥42.4 billion year-on-year to ¥363.9 billion, while adjusted EBITDA increased by ¥75.5 billion to ¥605 billion [23] - The nine-month cumulative consolidated operating cash flow, excluding the Financial Services segment, was ¥618.5 billion [24] Business Segment Data and Key Metrics Changes Game & Network Services (G&NS) - FY '23 Q3 sales increased by 16% year-on-year to ¥1,444.4 billion, driven by increased third-party software sales and favorable foreign exchange rates [26] - Operating income decreased by ¥30.1 billion year-on-year to ¥86.1 billion, primarily due to lower profitability of PlayStation 5 hardware [27] - PS5 hardware unit sales for the quarter were 8.2 million units, with cumulative sales exceeding 50 million units [29] Music Segment - FY '23 Q3 sales increased by 16% year-on-year to ¥422.1 billion, with operating income rising by ¥13.1 billion to ¥76.1 billion [37] - Streaming revenue for the quarter grew by 12% for Recorded Music and 17% for Music Publishing [38] Pictures Segment - Sales increased by 10% year-on-year to ¥366.3 billion, with operating income rising significantly by ¥16.2 billion to ¥41.6 billion [44] - The impact of Hollywood strikes is expected to peak next fiscal year, affecting profits [46] Imaging & Sensing Solutions (I&SS) - FY '23 sales increased by 21% year-on-year to ¥505.2 billion, with operating income rising by ¥14.9 billion to ¥99.7 billion [54] Financial Services Segment - Revenue increased by ¥287.3 billion year-on-year to ¥311.7 billion, with operating income rising by ¥30.2 billion to ¥77.3 billion [61] Company Strategy and Development Direction - The company aims to optimize sales of PS5 hardware while balancing profitability, anticipating a gradual decline in unit sales from next fiscal year [33] - Strategic investments in the semiconductor group are expected to total ¥1.9 trillion for CapEx and ¥1.8 trillion for M&A over the current mid-range plan [18] - The company is exploring opportunities in India despite stalled merger negotiations, focusing on organic growth and alternative strategies [2] Management's Comments on Operating Environment and Future Outlook - Management noted that the current fiscal year is approaching record high levels of consolidated operating income, creating momentum for future growth [64] - The company expects operating income in the G&NS segment to slightly increase due to growth in third-party software and network services [65] - Management acknowledged challenges in maintaining profitability in the gaming segment due to rising component costs and the need for a balanced sales strategy [112] Other Important Information - The company plans to streamline its financial structure through a partial spin-off of Sony Financial Group, aiming for a listing in October 2025 [81] - The company is focusing on enhancing user engagement and profitability in its gaming segment, with a shift towards high-quality first-party titles [35] Q&A Session Summary Question: What is the expected level of strategic investment and CapEx for the current mid-range plan? - The cumulative amount for CapEx is forecasted to be about ¥1.9 trillion, with M&A and strategic investments at ¥1.8 trillion [18] Question: How does the company plan to address the decline in PS5 unit sales? - The company aims to optimize sales while focusing on profitability, anticipating a gradual decline in unit sales from next fiscal year [33] Question: What are the expectations for the Music segment's growth? - The company expects continued growth in streaming revenue, with a strong foundation established through catalog acquisitions [42] Question: How does the company view the impact of Hollywood strikes on the Pictures segment? - The impact is expected to peak next fiscal year, with delays in releases affecting profitability [46] Question: What measures are being taken to improve profitability in the gaming segment? - The company is focusing on balancing sales volume with profitability and enhancing first-party content to drive margins [112]

SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of February 2025 Commission File Number: 001-06439 SONY GROUP CORPORATION (Translation of registrant's name into English) 1-7-1 KONAN, MINATO-KU, TOKYO, 108-0075, JAPAN (Address of principal executive offices) The registrant files annual reports under cover of Form 20-F. Indicate by check mark whether the registrant files ...

Group 1: Financial Performance - Sony Pictures Entertainment reported third-quarter profits of $223 million, a nearly 21% decrease compared to the same quarter last year [1] - Adjusted OIBDA for Sony Pictures was $308 million, reflecting a 16.5% decline [1] - Sales for Sony Pictures increased by 6% year-over-year, reaching $2.619 billion [1] Group 2: Overall Company Performance - Sony Corp's consolidated sales rose 18% year-over-year to 4,409.6 billion yen ($28.6 billion) [2] - Consolidated operating income increased by 1% to 469.3 billion yen ($3.05 billion) [2] Group 3: Segment Performance - The Pictures segment saw revenue growth attributed to higher theatrical release revenues, with "Venom: The Last Dance" grossing $478 million globally [3] - The acquisition of Alamo Drafthouse Cinema and subscriber growth at Crunchyroll positively impacted revenues, though this was partially offset by lower series deliveries in Television Productions [4] - In the Games & Network Services segment, profits rose 37% to 118.1 billion yen ($766.3 million) due to increased sales from network services and non-first-party game titles [6] - Music segment earnings jumped 28% to 97.4 billion yen ($631 million), driven by higher revenues from streaming services and foreign exchange rates [6] Group 4: Future Outlook - Sony has raised its full-year sales forecast to 13.2 trillion yen ($85.6 billion), a 4% increase on a yen basis [7] - The operating income outlook has also been increased by 2% to 1.335 trillion yen ($8.7 billion) [7]