Sony has lowered its PlayStation 5 sales forecast for the fiscal year ending March 2024 from 25 million units to 21 million units, announcing it expects a “gradual decline” in PS5 hardware sales moving forward as the console transitions into the latter half of its lifecycle.
In its recent Q3 earnings report, Sony said it sold 8.2 million PS5s last quarter, bringing total sales for the fiscal year to 16.4 million units.While game sales and monthly active PSN users hit new records, Sony trimmed its gaming revenue forecast by 5%, partly due to hardware losses from holiday promotional activities.
“Regarding PS5 hardware, which will enter its fifth year after launch, we’re aiming to optimise sales with a greater emphasis on profitability balance,” said Sony CFO Hiroki Totoki. “So we expect a gradual decline in unit sales from next fiscal year onwards.”
The lowered forecast comes despite strong software sales for first-party exclusives like Marvel’s Spider-Man 2, which has now sold 10 million copies. However, Sony says it doesn’t plan to release any other big franchise titles in the coming fiscal year.
“Regarding first-party software, we aim to continue to focus on producing high-quality productions and producing live service games. But while major projects are currently under development, we do not plan to release any new major existing franchise titles next fiscal year like God of War: Ragnarok and Marvel Spider-Man 2,” said Totoki
As the PS5 approaches its fourth birthday in late 2024, Sony says it will prioritise profits over boosting sagging hardware sales.
“PS5 will enter the latter stage of its life cycle,” said Sony VP Naomi Matsuoka. “As such, we will put more emphasis on the balance between profitability and sales. For this reason, we expect the annual sales pace of PS5 hardware will start falling from the next fiscal year.”
“There is one bright spot in Sony’s PlayStation business, namely the record number of 123 million monthly active users on the PlayStation Network,” said industry analyst Dr. Serkan Toto. He noted it was already clear after Q2 that Sony would miss its lofty 25 million PS5 sales target. With the console likely nearing the midpoint of its lifespan, it remains to be seen how Sony will keep PS5 sales momentum going.
Sony released a new PlayStation 5 Slim model in November. Once the PlayStation 5 model goes out of stock, the Slim version will be the only one available.
Sony’s Network services revenue, including PS Plus and advertising revenue, reached ¥137.1 billion, its highest since last year’s revamp. PlayStation Network monthly active users hit a record high of 123 million, up 11 million YoY. Software sales for PS4 and PS5 increased to 89.7 million units, while digital software accounted for 66% of quarterly game sales.
In its recent Q3 earnings report, Sony said it sold 8.2 million PS5s last quarter, bringing total sales for the fiscal year to 16.4 million units.While game sales and monthly active PSN users hit new records, Sony trimmed its gaming revenue forecast by 5%, partly due to hardware losses from holiday promotional activities.
“Regarding PS5 hardware, which will enter its fifth year after launch, we’re aiming to optimise sales with a greater emphasis on profitability balance,” said Sony CFO Hiroki Totoki. “So we expect a gradual decline in unit sales from next fiscal year onwards.”
The lowered forecast comes despite strong software sales for first-party exclusives like Marvel’s Spider-Man 2, which has now sold 10 million copies. However, Sony says it doesn’t plan to release any other big franchise titles in the coming fiscal year.
“Regarding first-party software, we aim to continue to focus on producing high-quality productions and producing live service games. But while major projects are currently under development, we do not plan to release any new major existing franchise titles next fiscal year like God of War: Ragnarok and Marvel Spider-Man 2,” said Totoki
As the PS5 approaches its fourth birthday in late 2024, Sony says it will prioritise profits over boosting sagging hardware sales.
“PS5 will enter the latter stage of its life cycle,” said Sony VP Naomi Matsuoka. “As such, we will put more emphasis on the balance between profitability and sales. For this reason, we expect the annual sales pace of PS5 hardware will start falling from the next fiscal year.”
“There is one bright spot in Sony’s PlayStation business, namely the record number of 123 million monthly active users on the PlayStation Network,” said industry analyst Dr. Serkan Toto. He noted it was already clear after Q2 that Sony would miss its lofty 25 million PS5 sales target. With the console likely nearing the midpoint of its lifespan, it remains to be seen how Sony will keep PS5 sales momentum going.
Sony released a new PlayStation 5 Slim model in November. Once the PlayStation 5 model goes out of stock, the Slim version will be the only one available.
Sony’s Network services revenue, including PS Plus and advertising revenue, reached ¥137.1 billion, its highest since last year’s revamp. PlayStation Network monthly active users hit a record high of 123 million, up 11 million YoY. Software sales for PS4 and PS5 increased to 89.7 million units, while digital software accounted for 66% of quarterly game sales.
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