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Sony Warns of a Deterioration in Playstation Sales

Sony Warns of a Deterioration in Playstation Sales

Sony Warns of a Deterioration in Playstation Sales: Sony has cut its estimate for its annual profit because sales of PlayStation games have been slowing down. Sony said that it sent out 2.4 million PlayStation 5 consoles in the last quarter, which is only a 4% increase from the 2.3 million consoles it sent out at the same time last year. Over 21.7 million PS5s have been shipped so far.

Sales of hardware are up a little bit from last year, but sales of software have dropped by 26%. Sony blamed the game slump on the fact that there aren’t as many big PlayStation games coming out this year as there will be in 2021 and that people spend less time playing games in general. This was supported by the fact that the number of monthly active PlayStation Network users dropped by 3% to 102 million. Gran Turismo 7 and Horizon: Forbidden West were both exclusive to Sony and came out earlier this year. However, Elden Ring came out at the same time on multiple platforms and stole the show.

Reuters says that Sony has cut its annual profit forecast for its gaming business by 16%, citing a drop in game sales in the next quarter and costs related to its recent $3.7 billion purchase of Bungie.

Sony Warns of a Deterioration in Playstation Sales
Sony Warns of a Deterioration in Playstation Sales

Sony’s sales of PlayStation games are the latest sign that the gaming industry is slowing down after a strong start in the early stages of the pandemic. Microsoft doesn’t say how much Xbox hardware it sends out, but in the most recent quarter, the company’s revenue from Xbox hardware, content and services, and gaming as a whole all went down. Microsoft made a lot of money from Xbox sales last year, but the company is warning that both gaming sales and sales of Xbox content and services will drop next quarter.

Sony now thinks that problems in the supply chain, not a lack of parts, are holding back PS5 shipments and that they will get better later this year. Sony will need to ship a lot more PS5s if it wants to sell 18 million per year as it plans. For the rest of the fiscal year, it needs to ship an average of more than 5 million PS5s each quarter. This is more than double the number of PS5s shipped this quarter. New game releases, like the highly anticipated God of War Ragnarok coming out on November 9 and The Last of Us Part I remake coming out on September 2, should also help software sales.

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Even though sales of PlayStation games as a whole have gone down, 79 percent of PlayStation games sold in the last quarter were digital, which is 11 percent more than the same time last year. In the past few years, more and more PlayStation games have been sold digitally. This was helped by the pandemic and the fact that the PS5 is only available digitally. Still, almost 80% digital is a big change, especially if it keeps up for the rest of 2022.

Sony’s new PlayStation Plus Extra and Premium tiers came out in the US last month, but we won’t know what their full effects are until the end of the next quarter. At the moment, there are 47.3 million people who have PlayStation Plus. This is up from 46.3 million at the same time last year, but it is down from 48 million in fiscal Q3 2021. In the most recent quarter, there were 102 million people who used the PlayStation Network every month, down from 105 million the year before.

Mukul Kumar

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