PlayStation 5 Hits a Massive Milestone in Hardware Sales, but Sony Says Profits Have Reduced by 49%

The next-gen gaming console giant, Sony’s PlayStation 5, has reached a massive milestone in terms of Hardware sales. But at the same time, Sony has told that profits have fallen significantly. The reason being the rising costs.

In the last three months, which ended on September 30, 2022 (FY 2022 Q2) PlayStation had sold over 3.3 million PS5 units. Which, according to the reports, are almost the same figure it managed during this exact period last year. Making the total units sold to date 25 million. Which is a big milestone for the system. 

This brings the total units sold to 5.7 million in the first half of FY2022. This is still pretty low considering Sony’s target of selling 18 million units by the end of the fiscal year. 

What did Sony say about the profits of the PS5?

In an earnings call, Sony had told that the PS5 sales are going according to plan, and they are confident that they will hit their target of selling 18 Million units by the end of the Fiscal year. But Sony’s Game & Network Service division had reported that the company is seeing low profits.   

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According to the report, this Fiscal year’s Q2 the company generated revenues worth ¥720.7 billion ($4.88 billion), which is up 12% in terms of year-over-year and a record Q2 in terms of Japanese yen figures. But the profits were very low as the company only made a profit of  ¥42.1 billion ($284.6 million) which is 49% lower. 

According to Sony, the losses are a result of the high rise of costs in game development and acquisition. Also, they included the recent purchase of Bungie, which had affected the company’s budget. They also said that the high rates of foreign exchange have also cost the profits of the company.  

The hike in revenue is attributed to the increase in the price of the PlayStation 5 consoles. Though the profits have declined in gaming sales, Sony’s other businesses like the Music and imaging business saw an increase of 8% in revenues as it collects ¥344 billion ($2.32 billion)

What is the Future of PlayStation 5? 

Even the total number of users of Sony’s inline services has also dropped as, there are currently 45.4 million users, compared to 47.3 million last year. But despite the fall in the user count, the actual revenues of online services such as PlayStation Plus and advertising have increased by 10%. From ¥106 billion to ¥116 billion.

Though Sony has sold 25 million consoles of PS 5 to date, the profits have fallen by 48%. But this fact hasn’t affected the company’s goals with the console as they are planning forward to boost their sales and have a bigger target for the FY 2023. 

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