Should Sony be worried about declining PS5 sales ?

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The numbers are in and they're mixed for Sony. D& #8217;on the one hand, its PlayStation 5 has just passed the 62 million unit sales marksince its launch in late 2020. On the other hand, its sales have declined sharply over the past year. In spring 2023, Sony sold 3.3 million PS5s. A year later, this figure fell to 2.4 million. A drop of almost a million units that is shocking.

However, the picture is not as bleak as it seems. It would even make its rival Microsoft pale, as it has seen sales of its Xbox melt like snow in the sun. Sony's video game division is in excellent health, with sharply rising financial results: 12% increase in revenues from games and services and operating income up 32%.

These performances are part of a particular context. The schedule of exclusive releases has been less busy than in previous years. Only Helldivers 2, launched in February 2024, has been a resounding success. Despite this, Sony is revising its forecasts upwards for the coming fiscal year, expecting growth of 3%.

A strategy that pays off despite the slowdown

How to explain these results ? First, the decline in PS5 sales is not a surprise. Sony's boss himself admits that the console “is entering its end of life”. This phase is normal in the cycle of a games console. After an initial peak, sales naturally tend to slow down.

But Sony anticipated this development. Its strategy is no longer based solely on hardware sales. The company has developed a complete ecosystem around its console. With more than 62 million PS5s in circulation, Sony therefore has a substantial captive market for its games and services.

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PS Plus, its subscription service, generates regular revenue, less dependent on market fluctuations. Microtransactions, particularly lucrative in free-to-play games, also represent a growing source of revenue.

What about games? We can't really say that 2024 was a flourishing year. Also, expectations around the next Star Wars Outlaws are enormous. The end-of-year holidays should also give the console a new boost.

In the meantime, Sony can count on its diversification to maintain its profitability despite the slowdown in console sales. The surprise success of Helldivers 2A perfect example of this approach. This exclusive game generated significant revenue without requiring new PS5 sales.

A PS5 Pro for late 2024 ?

Finally, Sony will be able to count on a highly anticipated new iteration of its home console. Rumors indeed suggest the launch of a PS5 Pro by the end of 2024. This improved version could revive consumer interest and boost console sales.

On the gaming side, several highly anticipated titles are in the works in Sony's internal studios. Death Stranding 2 and Marvel's Wolverine are expected to attract new players to the PlayStation ecosystem.

Sony's recipe therefore seems to be bearing fruit and is not unlike that of one of its competitors. Nintendo, with its Switch, continues to rake in record profits thanks to its catalog of games and its iconic franchises. And this despite Switch sales being down for several months.

• PS5 sales are down, but PlayStation revenues are up sharply
• Sony is making up for the hardware slowdown with games, services and subscriptions.
• The future looks bright for Sony with a possible PS5 Pro and new exclusives in the works.

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