Sony’s latest financial report, for the quarter ending 30 June 2024, has revealed strong growth across the business, with operating income up 32%, and its Games and Network Services division up 12% year-on-year.
Per flavour in its summary, Sony has attributed this health to the impact of foreign exchange rates, and overall increasing sales for first-party game software titles – despite few major exclusives launching on the platform over the last year. PlayStation Plus has also contributed significantly to this rise, with more subscribers joining the service. Sony has reported PlayStation now has 116 million monthly active users (MUAs), which is an increase from its last financial year.
Additionally, Sony has reported increased income from software sales, with 80% of these 53.6 million sales being digital, and just 20% being physical. It appears, based on this data, the balance towards digital has risen significantly since last year, with many more players now buying games via the PlayStation Store and other digital storefronts.
PS5 console sales are down
While all this is positive news overall, Sony has reported a major drop in hardware that’s worth noting. While sales for the PS5 continued in its latest financial quarter, with the console now having sold 61 million units worldwide, just 2.4 million PS5 consoles were sold in this last quarter.
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In the prior financial year, 3.3 million PS5 consoles were sold. As a result of this dip, Sony has reported a 21% revenue decline for hardware sales.
While newer game releases like Astro Bot may drive renewed interest in the PS5, it’s very likely that interest in the console is slowly waning as it enters maturity. Consoles also typically get a mid-generation refresh halfway through their life cycles, with higher specifications and internals – significant changes that aren’t only cosmetic, like the PS5 Slim. While Sony hasn’t yet announced anything formal, it could be that expectations based on precedent are driving a lessened interest in new purchases of the PS5.
It’s also highly possible that a lack of major PS5-exclusive software releases has contributed to this downturn, with fewer reasons for keen players to adopt the PS5. Again, Astro Bot could change this, as could major blockbusters on the way – like the currently console-exclusive GTA 6, Star Wars Outlaws, Assassin’s Creed Shadows, or beyond – but for now, it appears the PS5 may have reached its peak.
Going forward, Sony will look to change this slide with new software releases, and it remains optimistic it will continue the overall growth of its gaming division, despite this challenge. In its latest financial report, Sony has revealed a 3% rise in expectations for its gaming division for the next financial quarter, which is a good indication of its confidence.
