Sony Pictures Entertainment reported flat revenue of $9.9 billion for fiscal year 2025, as gains from its streaming and anime divisions failed to offset weakness in theatrical releases. The studio's bottom line suffered further damage from the shutdown of Pixomondo, its visual effects division.
Crunchyroll's expansion delivered higher sales for the anime-focused streamer, while "Demon Slayer: Kimetsu no Yaiba Infinity Castle" performed as a global blockbuster. These wins, however, couldn't compensate for softer theatrical revenue across the broader film slate. The company faced headwinds in its traditional motion picture business, a persistent challenge across the industry as theatrical windows shrink and streaming dominates audience viewing habits.
The Pixomondo closure represents a significant cost to Sony's profitability. The VFX studio, which has provided visual effects work for major studio projects, became a casualty in the broader consolidation of effects vendors. The company's decision to shutter the division reflects ongoing pressures in the post-production sector, where rising costs and changing production workflows have forced studios to reconsider in-house VFX operations.
Sony's results illustrate the precarious balancing act facing legacy media companies. Streaming platforms like Crunchyroll represent the future revenue stream, yet they require substantial investment to compete against Netflix, Disney Plus, and other competitors. Meanwhile, theatrical releases still carry prestige and franchise value, but declining box office returns make it harder to justify bloated production budgets.
The anime vertical proved resilient for Sony, with Crunchyroll's growth offsetting theatrical weakness. The platform has become a cornerstone of Sony's streaming strategy, offering a dedicated audience and strong international appeal. "Demon Slayer," based on the massively popular manga series, demonstrated anime's proven ability to generate tentpole-level revenue.