Sony’s PlayStation 5 sales are relatively stable and strong, with 3.3 million units sold in fiscal Q2 2.2 million in the last quarter, Total sales 13.4 million units, Sony Announcement. Game sales grew significantly to 76.4 million units from 63.6 million in the previous quarter, largely due to third-party sales.
All in all, this is a healthy 27 percent increase in gaming revenue to 645.4 billion yen ($ 5.68 billion). However, operating income fell 82.4 billion yen ($ 728 million) to 3.4 billion yen ($ 29 million) compared to the previous quarter. Sony’s fiscal year ends March 31, 2022.
So how can profits be lower when sales and revenue increase? Although Sony sold more games in the last quarter, first-party titles dropped significantly, from 10.5 million in the last quarter to 7.6 million in Q2. It was offset in numbers by third party games, but they are not as profitable. Both Microsoft And Sony Gaming studios have been acquired to boost their Xbox / PS first-party titles, but Microsoft has been even more effective in that regard.
And while PS5 sales have risen, PS4 units have dropped significantly, from just half a million in the previous quarter to just 200,000. Other reasons Sony mentioned were “losses due to strategic price points for PS5 hardware that were set lower than production costs.” That means Sony sold the PS5 this quarter with minimal or negative profits, although in August the company said it was No more PS5 sold at a loss.
Despite the quarterly earnings decline, Sony’s gaming segment seems to be in a pretty strong position. In its August earnings call, Sony CFO Hiroki Totoki told investors that the company believes it will take sales of the 14.8 million units it acquired in the first year of the PlayStation 4. PS5 sales are tracking closer to that figure.
The company said at the time that it had secured enough components for the 22.6 million units sold by March 2022. That should be sufficient enough to cover his sales estimates, but he may not have a large margin if the holiday sales really explode. Error – This means that the deficit may continue for years to come.
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