Sony Corp announced a $3 billion share buyback program as the Japanese entertainment and technology conglomerate navigates challenges including rising memory prices that are expected to impact its gaming division.

The company forecasts lower sales for its gaming business amid a surge in memory component costs, according to company projections. Despite these headwinds in one of its key divisions, Sony expects to achieve double-digit earnings growth overall.

The buyback announcement comes as Sony has been investing heavily in content acquisitions in recent years, spending billions of dollars to strengthen its entertainment portfolio across gaming, music, and film divisions.

Sony's gaming division has been a significant revenue driver for the company, making the projected sales decline notable for investors tracking the company's performance across its diversified business segments.

The share repurchase program represents one of Sony's largest capital return initiatives and signals management's confidence in the company's long-term prospects despite near-term sector-specific challenges.