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The problem is with google now,disable it and radio should work.
Settings > apps > all > smartconnect > clear data and also, FM radio > restart the phone
Great.
Yeah, but that's not a solution! It's a bug! So we actually have to chose between the 2: either radio or Google Now. You can't have both! This should be fixed in the next update! So, don't mark that post as "solved" please...
Has Sony reported that to Google and gotten a confirmation that they'll fix it? I don't think so. A good company should give solutions for its customers and not wait for some 3rd party solution. "That's something that Google has to fix." is an unacceptable official answer.