Sony to Release Refreshed PlayStation 5 as Analysts Predict Sluggish Sales

Sony aims to sell 18 million PlayStation 5 consoles in its financial year ending in March 2023.

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Sony to Release Refreshed Version of PlayStation 5 in 2023: Analysts

Sony is likely to release a refreshed version of the PlayStation 5 this year, analysts told CNBC, after the company cut its forecast for sales of its flagship console.

The move would be designed to boost interest in the PlayStation 5 and offer a souped-up piece of hardware ready for release of Grand Theft Auto VI in 2025, one of this decade’s most hotly anticipated games, the analysts said.

Opportunity for Increased Sales

Sony’s decision to release a refreshed version of the PlayStation 5 stems from a desire to reinvigorate sales and capitalize on the release of Grand Theft Auto VI in 2025, according to analysts.

PlayStation 5 Pro Expected

Analysts are now speculating the launch of a PlayStation 5 Pro from Sony in the second half of 2024. Serkan Toto, CEO of Tokyo-based games consultancy Kantan Games, stated, “There seems to be a broad consensus in the game industry that Sony is indeed preparing a launch of a PS5 Pro in the second half of 2024.”

Updated Hardware for the Next Big Release

With the impending launch of Grand Theft Auto VI in 2025, the entire gaming industry is expecting a surge in demand. To capitalize on this, Sony is rumored to be working on the PlayStation 5 Pro to offer gamers a great piece of hardware and breathe new life into sales.

Sony’s Strategy and Margins

Sony’s decision to release a refreshed version of the PlayStation 5 comes as the company strives to optimize sales and strike a balance with profits in its gaming business. The aim is to ensure profitability rather than slashing prices, as seen in previous console cycles.

Profitability Concerns

Sony’s gaming business is currently facing challenges, as profit margins sit near decade lows. Even with the release of the PS5 Pro, analysts believe the company may not reduce the price of the existing PS5, potentially resulting in declining year-on-year hardware sales.