Sony's latest quarterly earnings clearly show the generation is winding down for the PlayStation 5, but the drop isn't dramatic enough to significantly disrupt the PS4's current cycle.
Throughout Sony's Q3'19 period, which runs from October - December 31, 2019, the company raked in $5.8 billion from overall Games and Network Service sales, a 20% drop from last year. Both hardware and software sales are down year-over-year too. Sony sold 6.2 million PS4s in the Holiday 2019 quarter, down 25% YoY, and a combined 81.1 million digital and physical PS4 games, down nearly 7% YoY.
These trends can be attributed to the absence of major heavy-hitting third-party games like the Q3 2018 launch of Red Dead Redemption 2, as well as the hardware market starting to peak.
Other interesting tidbits to note is how services actually jumped 7% to $785.6 million, driven in part by strong PlayStation Plus premium subscriptions.
Sony confirms PS Plus subscribers now sit at 38.8 million, up 6.8% YoY. These numbers mean roughly 36% of all PlayStation 4 owners (106 million users in all) are subscribed to PlayStation Plus.
Gaming is still as important to Sony as ever, making up a significant portion of its overall fiscal year earnings. Games and Network Services made up 23.7% of Sony's total consolidated earnings for the nine-momth period ending December 31, 2019.
Sony expects PlayStation 4 sales to moderate throughout Q4 as it gears up for the PlayStation 5 in holiday 2020. The games-maker didn't discuss or reveal any key info about the PS5 during the presentation, and we still don't know when the console's reveal event will be held.
- Games and Network Services sales- $5.8 billion (632.1 billion yen), down 20% YoY
- Games and Network Services operating income- $489.99 million (53.3 billion yen), down 27% YoY
- PS4 hardware sales revenue - $1.36 billion (148.472 billion yen), down 33.5% YoY
- Physical software sales - $386.92 million (42.09 billion yen), down 49% YoY
- Digital game sales/DLC - $2.80 billion (304.982 billion yen), down 35% YoY
- Services revenue - $785.69 million (85.484 billion yen), up 7.1% YoY
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