PlayStation's microtransaction revenues drop to lowest point since 2019

PlayStation's digital add-on content revenues drop to their lowest point since 2019 as total monthly active users, subscribers, and total earnings drop.

PlayStation's microtransaction revenues drop to lowest point since 2019
Published Nov 4, 2022 8:04 AM CDT
1 minute & 59 seconds read time

Amid weakening yen and sales slips, Sony's Games and Network Services division reported noteworthy losses for the Q2 period.

PlayStation's microtransaction revenues drop to lowest point since 2019 334

Sony's latest Q2 FY2022 earning report shows significant year-over-year losses for its PlayStation games business, including a 59% drop in operating income when converted to USD. While most of PlayStation's business channels were affected by the Q2 drop, its most lucrative segment was hit the hardest: Microtransactions.

According to the figures provided by Sony and converted by us, PlayStation's Add-On Content segment revenues dropped to the lowest point since 2019. Add-On Content includes microtransactions from both premium and free-to-play games, DLC, and expansions, and typically makes most of Sony's quarterly and annual revenues.

Add-on content revenues fell to their lowest point since Q2'19, showing steep competition in the live gaming market, a weakening yen, and potential engagement churn on the PlayStation ecosystem.

Add-on content revenues fell to their lowest point since Q2'19, showing steep competition in the live gaming market, a weakening yen, and potential engagement churn on the PlayStation ecosystem.

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

In Q2 FY2022, PlayStation Add-On Content revenues fell over 20% to $1.36 billion, representing a loss of $347 million when compared to year-ago earnings.

Contributing factors include the weakening yen, tougher comparisons against Q2 2021 where Sony achieved record microtransaction revenues for any Q2 period in the history of PlayStation (driven by tailwinds established by pandemic high points), and lower-than-expected in-game purchases made during Q2 2022.

PlayStation's microtransaction revenues drop to lowest point since 2019 132

The drop in earnings also led to a 4% drop in software earnings share: Add-on Content made 51% of total Q2'22 video game software revenues, as opposed to 55% in Q2'21.

Sony makes most of its quarterly and yearly revenues from add-on content, which includes microtransactions from successful live games like Fortnite, Call of Duty Warzone, Apex Legends, and Genshin Impact.

Sony makes most of its quarterly and yearly revenues from add-on content, which includes microtransactions from successful live games like Fortnite, Call of Duty Warzone, Apex Legends, and Genshin Impact.

Reduced monthly active users (MAUs) has also affected add-on content. PlayStation's ecosystem had lost another 1 million MAUs during Q2 2022, bringing total MAUs down to 102 million, which is another metric that hit its lowest point since 2019.

This should be a bump in the road for Sony, who is poised to rake in large income streams from new games like Overwatch 2 and the wildly successful Call of Duty Modern Warfare 2, which recorded the best-ever digital Call of Duty launch in PlayStation history and managed to generate $800 million in just 3 days.

Buy at Amazon

PS5 God of War Ragnarok Launch Edition

TodayYesterday7 days ago30 days ago
$69.99$69.00$69.99
* Prices last scanned on 11/27/2022 at 6:42 am CST - prices may not be accurate, click links above for the latest price. We may earn an affiliate commission.
NEWS SOURCE:sony.com

Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

Newsletter Subscription

    Related Tags

    Newsletter Subscription
    Latest News
    View More News
    Latest Reviews
    View More Reviews
    Latest Articles
    View More Articles