For the fiscal year ended March 31, 2026, considering the business environment, as a result of reviewing the future projections for the business operated by Bungie, Inc. (“Bungie”), a wholly-owned subsidiary of Sony within the G&NS segment, Sony determined that sufficient future cash flows were not expected to be generated to recover the carrying amount of the assets. As a result, Sony recognized impairment losses for the entire carrying amount of Bungie’s non-financial assets, excluding goodwill, resulting in impairment losses of 65,312 million yen in other operating (income) expenses, net, related to property, plant and equipment of 11,309 million yen, ROU assets

14,266

million yen and other intangible assets of

39,737

million yen, and

also

recorded impairment losses of

54,750

million yen in cost of sales related to content assets. The recoverable amount of the assets was measured using value in use with a

pre-tax

discount rate of

13.0

For the fiscal year

ended March 31, 2026, considering the business environment, Sony decided to wind down the businesses operated by Pixo Holdings, Inc., a wholly-owned subsidiary of Sony within the Pictures segment, and its consolidated subsidiaries (collectively, “Pixomondo”), while completing any outstanding contractual obligations. As a result, Sony determined that

re was

recoverable amount

Pixomondo’s non-financial assets

including property, plant

and equipment of

5,171

million yen,

ROU

assets of

640

million yen, goodwill of

14,355

million yen and other intangible assets of

1,944

million yen

and accordingly recognized impairment losses of

22,110

million yen in other operating (income) expenses, net.