PlayStation 5 not selling as well as expected

According to Engadget , despite achieving record quarterly revenue and selling 8.2 million PlayStation 5 (PS5) units during the year-end holiday season, Sony has significantly reduced its expected sales for the PlayStation 5 in fiscal year 2023. Specifically, the company now expects to sell 21 million units instead of the previous figure of 25 million.

This is a surprising move for the gaming company, as it comes after Sony posted record quarterly revenue during the holiday quarter. This fiscal year, Sony sold 16.4 million units, bringing its lifetime total to 54.8 million worldwide (the company sold 19.1 million PS5s in fiscal 2022).

Sony predicts PlayStation 5 sales will be lower than expected

Last December, Sony announced that it had sold 50 million PS5 consoles in the past three years, as of December 9. That's a week longer than the PS4 to reach the same number, but the PS4 didn't have to deal with supply chain constraints and a global pandemic.

Revenue increased 16% year-over-year, thanks in part to increased third-party game sales. However, operating profit fell significantly (26%) due to a decline in exclusive game sales and hardware losses due to promotions. In other words, PS5 sales fell short of the company's expectations despite the price cut.

Sony has seen higher sales in all three quarters compared to last year. However, that may not continue this year, as the company forecasts sales of just 4.6 million units in the fourth quarter of fiscal 2023 (February-April), down from 6.3 million units in the fourth quarter of fiscal 2022.

In terms of new exclusive games, Sony said Marvel's Spider-Man 2 has sold 10 million copies (as of February 4) since its release in October 2023.

Finally, most of Sony’s other business segments saw strong earnings, including the Imaging & Sensor Solutions division (Sony makes sensors for iPhones and many other devices), along with Pictures and Music. That led to a record 3.75 trillion yen for the third quarter ($24.9 billion) compared to 3.08 trillion yen ($20.5 billion) the year before.

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