games

Sony hits 25Mn PS5 sales milestone, reports a 49% profit drop for Q3

Date: November 02, 2022 Meghna Singh Meghna Singh
Sony hits 25Mn PS5 sales milestone, reports a 49% profit drop for Q3 
Japanese tech giant, Sony, has reportedly hit a new sales milestone of ‘25 million units shipped’ for the  PlayStation 5 gaming console during its financial results call earlier this week. The company shipped 3.3 million PS5s in the third quarter of this year, exactly matching the sales numbers it achieved during the same quarter last year.



According to reports, this brings the total number of PS5 consoles sold in the first half of this fiscal year to 5.7 million. But the number is still falling short of Sony’s targeted goal of 18 million units shopped by the end of the fiscal year.



However, during its earnings call, Sony stated that the PS5 sales are going as per plan. The company believes that it can still hit the 18 million target, claiming that it had manufactured over 6.5 million units in the second quarter of this year.



The Game & Network Services division reported a revenue of ¥720.7 billion ($4.88 billion) in Q2FY2022, a 12% increase on-year and the highest Q2 figures recorded in terms of Japanese yen figures. The profit however came at ¥42.1 billion ($284.6 million), a significant drop of 49% on-year.



According to the electronics company, the dip was due to the rise in costs of game development and acquisitions, along with the negative impact of foreign exchange rates leading to a higher US dollar.



Meanwhile, the increase in gaming revenue was in part due to an unexpected rise in hardware sales after the prices of PS5 hardware were increased.



The division also cut its full-year guidance by 12%, due to lower-than-expected sales of its third-party games.



Overall profits of Sony grew 8% to ¥344 billion ($2.32 billion), as its imaging and music business made up for the loss in gaming.



However, this will be the second consecutive quarter when the company saw a drop in monthly active users of the PlayStation Network as well as the subscribers of PlayStation Plus. Since its revamped version was launched in June, PlayStation Plus has lost almost 2 million subscribers.



Despite the fall in subscribers, its Network services revenue, which includes the PS5 Plus and advertising revenue, went up 10% to ¥116 billion ($787 million).



Source credit: https://www.videogameschronicle.com/news/ps5-hits-25-million-but-sony-gaming-profits-fall-49-due-to-rising-costs/

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Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and Newsorigins. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.