PS5 reaches 25 million, but Sony’s gaming profits fall 49% due to rising costs | CVG

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Playstation 5 [3,877 articles]” href=””>PlayStation 5 has reached 25 million units shipped, Sony Interactive Entertainment [2,624 articles]” href=””>Sony announced during its latest financial results on Tuesday.

The electronics giant shipped 3.3 million PS5 units during the three months ending September 30, 2022 (second quarter of fiscal 2022), it said, which is exactly the same figure it handled during the same period of the year. last year.

That brings total PS5 console sales to 5.7 million for the first half of fiscal 2022, which is well below Sony’s unchanged target of 18 million for the end of its current fiscal year in March 2023.

Speaking during an earnings call on Tuesday, Sony said PS5 sales were going as planned and that it believed it could still hit its 18 million sales target. The company made 6.5 million consoles in the second quarter, he said.

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While Sony’s Gaming and Network Services division reported second-quarter revenue of ¥720.7 billion ($4.88 billion), up 12% year-over-year and a record second quarter in terms of Japanese yen figures, earnings fell significantly by 49% to ¥42.1 billion ($284.6 million).

Sony said its decline in gaming profit was due to an increase in game acquisition and development costs (including the purchase of Bungie [180 articles]” href=””>Bungie), as well as a negative impact from exchange rates reflecting a high proportion of costs in USD.

The increase in gaming revenue was partly attributed to an expected increase in hardware sales due to recent PlayStation 5 hardware price increases.

Sony’s Game & Network Services division revised its full-year forecast down 12%, citing lower-than-expected sales of third-party games.

Sony’s overall profit rose 8% to ¥344 billion ($2.32 billion), as strong performance in its music and pictures business offset declines in gaming.

Software shipments increased during the quarter to 62.5 million units, up from 47.2 million in the previous quarter, but down from 76.4 million managed during last year’s second-quarter window.

Digital software accounted for 63% of quarterly game sales, up from 62% a year earlier.

For the second consecutive quarter, the company saw a decline in the number of PlayStation Plus subscribers and PlayStation Network monthly active users (MAUs).

Sony Gaming Results (FY2022 Q2).

That means PlayStation Plus subscribers have dropped by nearly 2 million users since the revamped service launched in June.

The total number of PlayStation Plus users stood at 45.4 million for the second quarter, up from 47.2 million a year earlier and 47.3 million for the previous quarter ending June 30, 2022.

However, despite the decline in subscribers, Sony’s network service revenue, which includes PS Plus and advertising revenue, actually increased by 10%, from 106 billion yen to 116 billion yen, which it could reflect the adoption of the more expensive subscription levels introduced by PS Plus.

PlayStation Network MAUs totaled 102 million, up from 104 million a year ago and 103 million the previous quarter. This appears to be Sony’s lowest MAU figure since it began reporting this data in early 2020.

Sony says its monthly active users are the estimated total number of unique accounts that played games or used services on the PlayStation Network during the last month of the quarter.

Sony said it will aim to ship 23 million PlayStation 5 consoles in its next fiscal year, which starts in April 2023, which would put the console ahead of the PlayStation 4. [5,584 articles]” href=””>PS4 during the same stage of its life cycle.

Sony said in May that it had shipped 11.5 million PS5 consoles during its fiscal year ending March 2022, missing its initial target of 14.8 million consoles by more than three million units, which it said was due to to parts shortage.

However, the company said it expects to sell significantly more PS5 consoles during the current fiscal year ending March 2023, around 18 million units.

During an earnings call on Tuesday, the company said there was no change to its 18 million PS5 sales forecast for this fiscal year.