Sony Pictures Entertainment reported flat revenue of $9.9 billion for fiscal year 2025, as streaming gains and international box office success failed to offset a broader theatrical downturn. The company's Crunchyroll anime platform and the global blockbuster "Demon Slayer: Kimetsu no Yaiba Infinity Castle" drove growth, but Sony's film division struggled with lower revenue from theatrical releases overall.
The profit picture darkened considerably. Sony took a significant financial hit from shuttering Pixomondo, its VFX division, a casualty of the studio's ongoing restructuring efforts. The closure reflects broader challenges facing visual effects houses as studios tighten budgets and consolidate operations.
The results illustrate Sony's current strategic tension. While streaming services like Crunchyroll have become revenue engines for the entertainment conglomerate, theatrical film remains unstable. Even a breakout anime film like "Demon Slayer" cannot fully compensate for weak performance across Sony's broader movie slate. The studio released fewer tentpoles than competitors and faced challenges in the crowded theatrical marketplace.
For Crunchyroll specifically, the anime streamer has emerged as Sony's most reliable growth driver, capturing the surging global demand for anime content. The service's subscriber base and revenue have expanded significantly, positioning it as a crown jewel in Sony's media portfolio. However, anime alone cannot sustain a studio of Sony's scale.
The Pixomondo shutdown signals that Sony is prioritizing profitability over expansion. Rather than invest in building internal VFX capabilities, the studio appears committed to relying on external vendors or reducing visual effects work to match current production volumes. The move follows similar consolidations across Hollywood as studios confront slower streaming growth and theatrical uncertainty.
THE TAKEAWAY: Sony's flat revenue masks a company in transition, betting heavily on streaming while its traditional film business struggles to generate consistent returns.