Sony anticipates selling 14.8 million PS5 units until March 22, bringing the console’s total sales to more than 22 million units.
Few consoles are profitable right away, and the PlayStation 5 is no exception. Eight months have passed since the PS5’s release, but the standard edition of Sony’s console has only recently become profitable, or is no longer being sold at a loss. In terms of the Digital Edition, it appears that Sony will have to wait a little longer before turning a profit.
Sony recently held its Q1 2021 earnings call, where Hiroki Totoki, Sony’s CFO, announced that the PlayStation 5 Standard Edition ($499) is no longer sold at a loss. As for the Digital Edition ($399), it still isn’t profitable. However, that loss is compensated with hardware sales, including peripherals, accessories and the PS4.
Compared to the PS3, which took four years to become profitable, the PS5 was much faster, taking up just eight months. That’s still slower than the six months it took for the PS4 to generate profit, but not by much.
By April 2021, the PlayStation 5 had already sold 7.8 million consoles, increasing to 10 million just last week. Still, Sony plans to sell many more PS5 consoles, increasing the total sales figure to 22.6 million by the end of this fiscal year (March 2021 to March 2022).
However, Sony’s latest earnings report does not contain all good news. The number of PlayStation Plus subscribers fell from 47.6 million to 46.3 million in the previous quarter, while monthly active users fell from 109 million to 104 million.
According to Serkan Toto, CEO of Kantan Games, this is due to the COVID-19 pandemic, which has caused the release of many games capable of increasing hardware sales and PlayStation network subscriptions to be delayed.
Sony anticipates that demand for PS5 consoles will remain high during the current fiscal year, but the ongoing chip shortage may have an impact on Sony’s plans. Some claim that the shortage will last another two years, but others are much more optimistic, expecting a few industries to return to normalcy by the end of 2021.
Masthead credit: Kerde Severin