PS5 Has Shipped 21.7 Million Units as of June 2022 as PlayStation's Profit Drops 37% Year-on-Year
Sony announced its financial results for the first quarter of the fiscal year 2022, including an update on PS5 and PS4 shipments.
twinfinite.net
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twinfinite.net
I believe the sheet says "-30,5%" for the profits. Really slow quarter indeed, the physical sales are almost agonizing, and look at that 79% digital ratio. No bump from PS+ Extra/Premium either right now, but it's early days.
Seems like a tapering out after covid. Also feels like hardware restraints will never be over at this point....
No the impact of Bungie acquisition will be reflected on profits (not revenue) from next quarter
The report itself notes the reason as increased game development cost
Revenue is down only 2% so the loss of profit is through other things such as PSVR 2 development, currency differences, and things of that nature. The fact that PlayStation is only 2% down in revenue with console shortages happening is very very good and suggests they will start beating last year soon.
They are doing far more than fine :p
I'm assuming a bungie acquisition would account as "game development cost"
If Revenue is the same and Profit is down that just means they're investing into something. Increased game development costs. I think (?) they would say if something gotten written off, so I'll just take it as a good sign that they put a lot into a few something's.
Bungie wasnt completed by then, and they count acquistion expenses separately.
This has more to do with sony expanding their internal studios
PSVR 2, software, the smaller chipset for the ps5, I imagine it will be things like that.
14 million more sales in hardware and hardware is a significantly lower profit percentage compared to the revenue it brings in. They did get almost 5 million more sales for network and network is usually huge profits. But with the new launch of PS+, they probably redid a lot of the games deals and that would have also cut into profits.
I know Bungie financials will get rolled in. But the actual acquisition shouldn't show up here, right? Where would they cover expenditures like that in their statements?
Haha yea, I think it's fair to say that they're investing their money in things for the future. And in some ways, it looks like gaming and network segment is doing better this quarter/FY year on year in terms of revenue, no? But, I mean, it's not like they didn't have console shortages or weren't investing in PSVR2 this time last year too haha. You're probably right that those sorts of factors are more salient, for sure, with things like preparing for production of PSVR2.
The report states the following 3 reasons for the decline in profit: lower 3rd party software sales (including add-ons), lower 1st party sales, increase in costs which is mainly software development at existing studios.
Yea, this is what I'm actually interested in. How much are they investing in the background for PS+ that users don't see/appreciate and how much does that cost. We see things like PS+ titles not getting upgrades alongside PS4/PS5 games like for Edith Finch. To me, that suggests something legal or on the backend - things that Sony would undoubtedly want to fix moving forward with the new PS+.
Other than that, I'm super curious how much they're investing in PS+ content deals in general now. Surely, it's a lot [more than what they were spending for PS+ and PSNow]. I'm not sure where that should show up in this statement, though?
I would assume, with no information, that games are getting delayed like crazy internally. They have to be, cuz they are everywhere else - and the types of big AAA games that Sony tends toward seem particularly susceptible.
nah, i still think there'll be one more gen with discs at least.
but what will happen is that the ratios will be reversed. PS6 disc is going to have the production unit numbers PS5 digital gets now.
Something to note : for the whole fiscal year, PlayStation expects a whooping 27,2 billion dollars sales, which I believe is a new record to behold among pretty much any video game company except Tencent Games in 2021.
The profits will be lower though, due to Bungie acquisition, slowest sales from third party games and negative impact of foreign exchange rate.
The profits will be lower though, due to Bungie acquisition, slowest sales from third party games and negative impact of foreign exchange rate.
Why are digital sales sad? Nobody gets sad about Valve, which is 100% digital.
Yeah that's what I was saying, PlayStation are killing it. The drop in profits makes it look more negative than it actually is. Revenue shows growth or lack thereof, profits does not.
I think you got it backwards. People that love the physical format are sad it's probably going away some years in the future. I for one hope it's not. I get lot's of good deals out of physical games.
The CFO has stated alongside these earnings that there is no change in their 18M PS5s by end of FY22 forecast which will bump them to 37.3M PS5s total by end of FY22. Gonna be interesting to see if they can pull it off with both sustained demand and production.
It's sad because physical is often much cheaper and goes on sale much faster. I've seen 20-30€ differences for the same game. This is less of an issue on PC as there's just more stores to buy keys from.
Well you still have the option to buy physical media, because PC are customizable and if a PC you bought doesn't have a disc drive you simply buy one and put it inside your PC. The fear is that once digital takes over (say 80-90%) Sony, Nintendo and Microsoft could stop producing consoles with a disc drive altogether. You won't be able to just go and buy a disc drive either as consoles are closed devices.
For a lot of people, convenience outweighs cost. Me included. I'm not walking to the store for $20 less :p
You know what, considering they've just acquired Square Enix... those are some pretty good numbers!
Or it'll be an external add-on produced in limited quantities that costs $149 and comes with the DVD/blu ray licence for the small number of people who want that.
While I get your point, please tell me which PC software releases on a disc these days
Um....isn't that alot for a $399/$499 console?? O_o 37mill in 2 years? In this current climate?
For many that extra saving means they can afford it, the lack of physical will mean less (no) competition and the likes of Sony can increase prices without any real way to combat it from a consumer point of view, we've already seen prices increase this generation and clearly with the cost of game development eating away at profits for these companies there's every chance we see further increases at some point.
PC gaming is different because of the amount of stores out there providing keys competing with each other, to have the same market governments would need to step in and force Sony to provide keys to third party sellers.
I doubt it would be digital only but I won't be surprised if the digital SKU becomes the main one.
I'm surprised its already at 80% but I guess the pandemic and subscription services really accelerated the adoption of digital.
In the future, physical will more likely become an enthusiast/hobby segment much like the music industry.
What's the ratio for number of physical and digital releases though? I imagine there are a lot more smaller digital titles being released than AA/AAA titles that are coming out on disc.
Do not forget they have made major investments in game studios, expanding existing studios, hardware production ramping up, and development for unreleased hardware this year. Revenue did not drop by much which means sales are strong, a profit drop like this means they are spending on something.
Some countries have hefty digital taxes too, like the one I live in. Games are way more expensive on PSN than it is physical. Also, and this is anecdotally, I rely on reselling games to fund future purchases too.
That said, I still don't see Physical games going away in the near future. That's still a big chunk of the playerbase.
Sure, but I suppose the volume of sold copies for those games is minuscule in comparison to the big AAA games, which are the ones I guess are moving that needle.
That's a good shout and I didn't thought about that. What you said is another reason why digital taking over with a unhealthy percentage so to speak is bad for players choice. Game companies just won't care about producing discs anymore.
I am curious in what country do you live?