Sony has still been out of stock for its PlayStation 5 since launch, but still managed to sell 4.5 million next-gen consoles in 2020. That’s the same number as in the first three months of launch. the PS4 in 2013, except that the new console only needed two months. Combined with sales of 1.4 million PS4 units, Sony’s gaming business had its best fiscal quarter in history with 883.2 billion yen (€ 7 billion) in revenue, in 40% increase compared to 2019.
A PS5 sold at a loss
Sony’s profits also rose 50% to 80.2 billion yen (634 million euros), due to the increase in-game sales amounting to 484 billion yen (3.8 billion yen). euros), i.e. double the material income. Sony also saw a 9% increase in PlayStation Plus subscription and other network revenue.
While the PS5 got off to a strong start, Sony also confirmed that it was losing money on every PS5 sold because it set “strategic prices for PS5 hardware that were… below manufacturing costs.” The cost of the launch itself also reduces the potential profits, as you would expect with a brand new console.
Sony Electronics performed well in the company’s last quarter (fiscal Q3), with revenue down slightly, but operating profit up 25.4% to 105.8 billion yen (830 millions of euros). Sony attributed this to an increase in TV revenue, a better product mix and lower operating costs in its mobile division. However, cellphone and camera sales declined in 2020, continuing the trend with Sony and the camera and mobile industries in general – Apple being the big exception.
Sony had a good quarter overall, posting profitability across all of its segments with sales and operating profit up 9.5 and 20 percent, respectively – games, once again, topped the list. Now all that’s left is to speed up manufacturing so that anyone who wants a PS5 console can get one. You will also find the various PS5 resellers to follow the evolution of stocks.