Sony raised its full-year operating profit forecast by 4% to 1.33 trillion yen, citing a smaller impact from Trump’s tariffs. The company sees a tariff impact of 70 billion yen, down from 100 billion yen forecast in May. Japanese companies are adjusting expectations due to trade deals with the U.S.

Sony expects a stronger profit outlook at its games business, with a 36.5% rise in operating profit to 340 billion yen for the April-June quarter. The company sold 2.5 million PlayStation 5 game consoles in the first quarter, with positive reviews for “Death Stranding 2” and “Ghost of Yotei” set for release.

Quarterly operating profit at the games business more than doubled to 148 billion yen due to higher sales of network services. Sony is seen as competing more with PC than Xbox in the gaming industry. The delayed launch of “Grand Theft VI” is expected to benefit Nintendo, which reported robust early demand for its new Switch 2 gaming device.

Read more at Yahoo Finance: Sony hikes profit forecast seeing smaller tariff impact