Monday , January 18 2021

Sony boosts PlayStation profits despite upcoming PS5 launch

Sony’s gaming division continues to bring huge profits to the company even as the PlayStation 4 era ends. The company reported PlayStation-related revenue of 507 billion yen (9 4.9 billion) and operating profit of 105 billion yen (милијар 1 billion) for its July-September quarter, an improvement of 52 and 40 percent, respectively, over the same period a year ago.

Given that the PlayStation 5 will be launched in a few weeks, you normally expect a significant negative impact on Sony books for the previous quarter, as the company increases production before it starts to bring in more revenue. Sony is indeed saying that its profits were affected by rising costs, while revenues were reduced by a predictable decline in PS4 sales. Higher sales of gaming software and PlayStation Plus subscriptions, however, made up for the shortfall.

Sony’s big release for the PS4 for a quarter was the samurai adventure in the open world Ghost of Tsushima, which came out in July and sold 2.4 million copies in the first three days. Sony says it is the fastest selling new IP on the platform.

Sony has now slightly revised its gaming year forecast, expecting revenue of 2.6 trillion yen in revenue and 300 billion yen in profit by the end of March 31. That would be a 26% increase in both revenue and profits, which would be impressive for the first year of the console cycle.

Sony’s revenue is likely to be limited in the short term by the number of PS5 consoles it can produce. In an interview with Reuters today, CEE chief Jim Ryan said there was “significant demand” for the device, which he said had been ordered in the United States more times in the first 12 hours than it was on the PS4 in its first 12 weeks. “Maybe no one wants to buy a PS5 on launch day.”

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