PlayStation Q2 earnings: Operating income down 59%, revenue drops $647 million

Sony reported noticeable drops for PlayStation gaming in Q2 due to a weakening yen and tough comparisons against last year.

Sony's Q2 FY2022 period saw sharp declines in nearly all relevant metrics.

Our analysis is presented in USD based on foreign exchange rates published in Sony's earnings documents. These numbers reflect the weakening yen and other major factors including tough comparisons (Sony's Q2 FY2021 period delivered strong results with record revenues of $5.86 billion).

Based on our findings, PlayStation Games and Network Services segment sales revenues slid to $5.215 billion in Q2 2022, representing a 11% year-over-year decline and a reduction of $647 million.

Games & Network Services Q2 FY2022

• Revenue - $5.215 billion, down 11%
• Operating Income - $304.86 million, down 59%
• Game Software - $2.677 billion, down 14%
• Game Unit Sales - 62.5 million, down 18%

Operating income slid 59% to $304.86 million, representing a $446 million drop from the year-ago period. Sony says that major acquisitions like the $3.7 billion Bungie buyout affected Q2 operating income alongside an increase in game development costs.

Game software revenues including in-game purchases were down 14% to $2.677 billion, representing a decrease of $438 million, and game unit sales were likewise down 18% with a drop of nearly 14 million game sales across both physical and digital channels. Sony says that gamers are spending 10% less time in PlayStation games because COVID-19 restrictions have lifted and more people are going outside.

Hardware unit sales are relatively flat year-over-year with 3.3 million PlayStation 5 consoles shipped, but hardware revenues are down slightly due to a weaker yen to USD rate. Sony expects hardware to remain profitable as it readies a massive multi-million PS5 shipment fusillade to meet holiday consumer demand.

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