Sony expects PS5 sales to decline, ‘no existing major franchise titles’ before April 2025
PS5 has now sold 54.7m units; Sony confirms it will fall short of lofty 25m fiscal year target
Sony says it expects PlayStation 5 hardware sales to “gradually decline” during its next fiscal year, which runs from April 2024 to March 2025, and confirmed it plans to release no “major existing franchise titles” during this 12-month period.
In the company’s financial results for the three months ended December 31, 2023, Sony gaming division reported another record quarter in terms of revenue, with PS5 sales reaching 54.7m, but lowered its sales forecast for the year after it fell behind in its lofty hardware target.
Sony Interactive Entertainment had set an ambitious sales target of 25 million PS5s for the year ending March 2024. However, in the latest quarter, it sold 8.2 million consoles, bringing the total for the year so far to 16.4m. The company said it now expects to fall short of its original target by 4 million units (21m).
The corporation now expects ¥210 billion in sales for the year from its Game & Network Services segment – a 5% downward revision – which it said was partly due to a decrease in sales and an increase in losses from hardware due to promotions.
“Regarding PS5 hardware, which will enter its fifth year since launch,” said Sony president, COO and CFO Hiroki Totoki. “Partially due to entering the latter half of the console cycle, we’re aiming to optimise sales with a greater emphasis on balance with profits. So we expect a gradual decline in unit sales from next fiscal year onwards.
“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.”
In software, Sony highlighted Marvel Spider-Man 2, which it said has now sold 10 million units. The Marvel Spider-Man series has sold-through more than 50 million copies worldwide across PC and console, it said.
Sony’s Network services revenue – which encompasses PS Plus and advertising revenue – increased again to its highest level since last year’s service revamp at ¥137.1 billion (up from ¥122.2 billion last year).
PlayStation Network monthly active users (MAU) also reached a record high of 123 million, up 11 million year-on-year. Sony says its MAU are the estimated total number of unique accounts that played games or used services on the PlayStation Network during the last month of the quarter.
Software sales (PS4 and PS5) increased 3.2 million year-over-year, to 89.7 million units. Digital software accounted for 66% of quarterly game sales, compared to 62% last year.
Tokyo-based industry consultant Dr Serkan Toto told VGC: “After the Q2 sales came out in 2023, it was already crystal clear Sony would never reach 25 million units this fiscal year. Q3 was OK but only possible because of Sony’s heavy promotions and discounts during the holidays.
“There is one bright spot in Sony’s PlayStation business, namely the record number of 123 million monthly active users on the PlayStation Network.”
Sony launched a new PS5 Slim model in November. Once inventory of the launch model has sold out, the Slim console will become the only one available.
It was recently claimed that Sony is planning to launch a PS5 Pro console in late 2024, and that it will feature a proprietary DLSS-like solution.
