Sony Expects Decline in PlayStation 5 Sales and No Major Franchise Titles in Next Year
Sony has revealed that it predicts a gradual decline in PlayStation 5 hardware sales and a halt in the release of any major existing franchise titles in the next fiscal year. The company expects this decline to occur during the period from April 2024 to March 2025. These insights were shared during the release of Sony’s financial results for the three-month period ending December 31, 2023.
Lowered Sales Forecast
Despite Sony’s gaming division reporting a record-breaking quarter in terms of revenue and PlayStation 5 sales reaching a commendable 54.7 million, the company fell behind in meeting its lofty hardware sales target. As a result, Sony’s sales forecast for the year had to be lowered.
Initially, Sony Interactive Entertainment had set an ambitious sales target of 25 million PS5s for the fiscal year ending March 2024. However, with only 8.2 million consoles sold in the latest quarter, the company is now expected to fall short of its original target by approximately 4 million units, resulting in an estimated 21 million PS5s sold by the end of the year.
Reasons for Sales Decline
Sony attributes the decrease in sales forecast to a combination of factors, including a decline in overall sales and an increase in losses from hardware due to promotions. The corporation now expects a 5% downward revision, approximately ¥210 billion in sales, for its Game & Network Services segment for the fiscal year.
Reflecting on the PS5’s progression in its fifth year since launch, Sony’s President, COO, and CFO, Hiroki Totoki, acknowledges the natural challenge of the console cycle’s latter half and aims to optimize sales while maintaining profitable margins.
No New Major Existing Franchise Titles
While Sony continues to prioritize the production of high-quality first-party software and the development of live service games, the company has confirmed that it has no plans to release any new major existing franchise titles in the next fiscal year. This includes highly anticipated games like God of War: Ragnarok and Marvel’s Spider-Man 2.
The absence of these major releases puts Sony’s emphasis on maintaining consistency in its release schedule and prolonging the longevity of existing titles. Even without major releases, Sony aims to captivate its player base through the continual production of high-quality games and ongoing support for live service games.
Strong Software Sales and Network Services
Despite the decline in hardware, Sony highlights the success of software sales. Marvel Spider-Man 2 alone has surpassed 10 million units sold, and the Marvel Spider-Man series has reached over 50 million copies sold across both PC and console platforms.
Additionally, Sony’s Network services revenue, which includes PS Plus and advertising, has continued to increase, reaching its highest level since the service revamp in the previous year, amounting to ¥137.1 billion.
The PlayStation Network has experienced a surge in monthly active users, reaching a new record high of 123 million, indicating a substantial and engaged player base.
Looking Ahead
While Sony has set a somewhat cautious forecast for the next fiscal year in terms of hardware sales and major releases, the company remains committed to enhancing the gaming experience and providing a wide range of quality games to the PlayStation community. Despite the absence of new major existing franchise titles, Sony’s plans to optimize sales and focus on existing games bear testimony to its continuous dedication to the gaming industry.
