Sony fails to achieve PS5 sales target as the console enters the “final stage of its life cycle”

Sony now expects to sell 4 million fewer PS5 consoles in its 2023 fiscal year ending March 31 compared to previous expectations. Bloomberg Reports. The review came as part of the day Third quarter earnings release Which led to Sony lowering PS5 sales expectations from the 25 million consoles it expected to sell to 21 million.

While PS5 sales increased in the third quarter from Sony, rising to 8.2 million units from 6.3 million in the same quarter of the previous year, Bloomberg It indicates that this was about 1 million units lower than previously expected. This is despite the release of a big first party title Spider-Man 2Strong sales of third-party titles, and the launch of a new, slimmer PS5 in November.

“We expect the pace of annual sales for PS5 to start declining from next fiscal year.”

In the third quarter, Sony's gaming revenue rose 16% from the same period a year earlier, to 1.4 trillion yen (about $9.3 billion), but operating income fell 26% to 86.1 billion yen (about $572 million) due to promotions. Promotional. In the third quarter ending December 31.

According to Sony, the company plans to emphasize profitability over unit sales as the console approaches its fourth birthday. “Looking forward, the PS5 will enter the final stage of its life cycle,” said Naomi Matsuoka, Sony's senior vice president, in her comments. Bloomberg. “As such, we will focus more on the balance between profitability and sales. For this reason, we expect the annual sales pace of PS5 to begin to decline from next fiscal year.” Sony added that it does not plan to release “any new existing major franchise titles” in its next fiscal year.

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