PlayStation Direct to hit $1.5 billion by 2023, may squeeze retailers

Sony expects its direct-to-consumer PlayStation Direct business to triple by 2023, and this growth could squeeze retailers like GameStop.

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Sony is cutting out the middleman with its relatively new PlayStation Direct direct-to-consumer (DTC) business. The idea is for Sony to distribute and sell games, console hardware, accessories, and merchandise on its wholly-owned storefront and while keeping all sales (and paying all costs). The model has seen moderate success growing from $228 million in FY20 to $458 million in FY21 due to PS5 sales.

PlayStation Direct is expected to really take off in FY22 (ending March 2023). Sony expects its DTC business to triple to $1.5 billion during the year as it expands to more European territories during the fiscal year. This move could further erode Gamestop's $6 billion games retail business (Gamestop is responding with digital commerce such as its new NFT marketplace).

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"We launched as planned in six European countries in late 2021 and intend to launch and complete the European picture in 2023. The launch in Europe, together with further growth in the U.S. will allow us to grown PlayStation Direct to become a $1.5 billion dollar business in FY22," Sony Interactive Entertainment CEO Jim Ryan said during a recent business briefing.

Sony is also expanding its PlayStation brand to include mobile and PC, as well as live services. Sony wants to have 12 live service games on the market by 2026 and PlayStation PC releases are expected to make $300 million this year.

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