• Light/Dark
  • Ever wanted an RSS feed of all your favorite gaming news sites? Go check out our new Gaming Headlines feed! Read more about it here.
  • We have made minor adjustments to how the search bar works on ResetEra. You can read about the changes here.

Sony FY23 Q2 Financial Results! Record-breaking Q2 Revenue, Low Margins, and 4.9M PS5 shipped!

ChaosSlayer

ChaosSlayer

Member
Jul 16, 2021
816
Notes:
* US Dollar figures have been converted from Japanese Yen using the Average Exchange Rates provided by Sony in their Earning Releases.
** YoY/QoQ growth is calculated using the original Japanese Yen figures.
*** To ensure consistency and avoid confusion, comparisons will be made using the Japanese Yen. Deep Dive analysis (Average Price of Games, ...) will use the US Dollar.
Data Source



Sony_logo.svg


Sony Group Corporation - FY23 Q2 (July - September 2023) Financial Results:​


Revenue: ¥2828.6B/$19.589B (+2.79% YoY from ¥2,751.9B in Q2 FY22)
Operating Income: ¥263B/$1.821B (-23.55% YoY from ¥344B in Q2 FY22)
Net Income: ¥200.1B/$1.386B (-28.97% YoY from ¥264B in Q2 FY22)


bJyw7qj.jpg


Game & Network Services (Playstation) FY23 Q2 (July - September 2023) Financial Results:​

FY2023 Q2 Results:
Game & Network Services (PlayStation) Revenue: ¥954,1B/6.607$B (+32.38% YoY ¥720.7B/$5.21B)
Game & Network Services (PlayStation) Operating Profit: ¥48.9B/0.339$B (+16.16 YoY ¥42.1B/$0.305B)

ggILnk8.png


This is SIE's biggest Second Quarter BY FAR in Revenue, competing with Q3s, the most lucrative Quarter.
  • Top 5 Q2 in terms of Revenue:
    1. PlayStation Q2 FY23
    2. PlayStation Q2 FY22
    3. PlayStation Q2 FY21
    4. PlayStation Q4 FY18
    5. PlayStation Q4 FY20
- Operating Income and Margins suffering due to high costs: 6th Highest recorded Operating Income in FYQ2.
  • Top 6 Q2 in terms of OI:
    1. PlayStation Q2 FY20
    2. PlayStation Q2 FY18
    3. PlayStation Q2 FY21
    4. PlayStation Q2 FY19
    5. PlayStation Q2 FY17
    6. PlayStation Q2 FY23
Here's a breakdown of PlayStation Sales per Segment in Q2:

IKSNi5p.png


QkhNxaU.png


6IBYmQ7.png



Hardware:

- Sony shipped 4.9m PS5s in Q2 FY23:
  • Significant YoY growth: 48.48% YoY Vs 3.3m units in Q2 FY22.
  • Significant QoQ growth: 48.48% QoQ Vs 3.3m units in Q1 FY23
- Record-breaking console shipments in Q2 for SIE. (Highest amount of consoles shipped in Fiscal Year Q2 by SIE to my knowledge)!
- As it stands, Sony shipped 8.2m PS5s in the current FY, which accounts for roughly 33% of their FY target (25m PS5s shipped)
- 46.6m PS5s shipped since launch Vs 47.4m PS4s in the same timeframe. Launch aligned, PS5 is currently lagging behind PS4 by 0.8m Units.

HVNxanS.png



Software:

67.6m Full PS4/PS5 Games sold in Q2 FY23.
  • 8.16% YoY increase: Up from 62.5m in Q2 FY22.
  • 19.65% QoQ increase: Up from 56.5m in Q1 FY23.
  • Digital accounted for 67% of Full Games Sales in Q2 FY23, comparable to previous quarters flat slightly up from 63% YoY and slightly down from 72% QoQ.
Here's a breakdown of the PS4/PS5 Full Games Sales Physical/Digital Split.

aMclqsC.png


4.7m First-Party Games sold:
  • Significant 28.78% YoY and QoQ decrease: Down from 6.6m in Q2 FY22/Q1 FY23. This is due to the lack of new First-Party releases during the quarter.
  • First-party games account for 6.95% of the Total Full Games sold in Q2 FY23, which is the lowest ratio of First-Party games since Sony started reporting the figure.
9WYU45z.png


SIE's cut from Physical games sold on PlayStation (average gross profit per physical copy sold):

CCbIxjv.png


Average Price of Digital Games Sold on PlayStation Store:

amy6Yd7.png


If there are any mistakes or suggestions, please let me know!
 
Last edited:
modiz

modiz

Member
Oct 8, 2018
17,905
Their margins are going to be low as long as they keep being very aggressive regarding PS5 pricing, but very impressive results overall.
 
SuperBanana

SuperBanana

Member
Oct 28, 2017
3,761
PlayStation has great growth but Sony Group net income is -28.97% YoY. That seems...really bad?
 
vivftp

vivftp

Member
Oct 29, 2017
19,823
modiz said:
Their margins are going to be low as long as they keep being very aggressive regarding PS5 pricing, but very impressive results overall.
Click to expand...
Click to shrink...

It'll work out long term to keep planting those seeds. The amount of ways they can make revenue off of someone who owns a PS5 is pretty damned ludicrous.
 
El Manco

El Manco

Member
Oct 28, 2017
1,145
Thanks for the amazing thread!

4.9M PS5 sold last quarter is higher than any July-Sept quarter during PS4 era.
Slim model + Spiderman 2 should help PS5 to surpass 10M in Oct-December. PS4 record in this quarter was 9.7M in 2016.
 
Super

Super

Studied the Buster Sword
Member
Jan 29, 2022
6,879
Hopefully the mods don't merge this thread. But a Q2 competing with Q3s is monstrous. Launch aligned they beat the PS4 4.2m Q2 FY2016 this quarter, they will close that 0.8m gaps over the coming months.
 

reksveks

Member
May 17, 2022
3,462
Forecasting a 6.5% margin in H2, which is up from H1.

Think the cheaper consoles probably is helping there alongside the very important factor that software margins are great.
 
kadotsu

kadotsu

Member
Oct 25, 2017
3,508
How do you get such explosive growth in network services and still have a shit margin. Did they overpay on PS+ Extra licensing? Or did they invest just way too much in their GaaS games that they out on ice?
 
Dr. Mario

Dr. Mario

Member
Oct 27, 2017
14,034
Netherlands
Can they still reach 25M? 8.2 in the first half seems a bit lower than I would have expected in order to reach that, with all of Sony's major games having been released. (? Surprise Monster Hunter release in Q1 after all?) But I don't follow PS sales curves that well, I thought their holiday quarter wasn't as pronounced as Nintendo's. Given another 5M in Q4, they would have to sell 11M, or more than twice as much in Q3. Need some price cuts.

Edit: oh wait this was without Spiderman 2, which is Q3, never mind then.
 
Last edited:
vivftp

vivftp

Member
Oct 29, 2017
19,823
kadotsu said:
How do you get such explosive growth in network services and still have a shit margin. Did they overpay on PS+ Extra licensing? Or did they invest just way too much in their GaaS games that they out on ice?
Click to expand...
Click to shrink...

I'm not knowledgeable on the subject, but keep in mind that Sony recently put a BUTTLOAD of PS5s into the cloud for their revamped cloud platform. Would the expense of that possibly be a factor there?
 

Jiggy

Avenger
Oct 25, 2017
9,334
wherever
kadotsu said:
How do you get such explosive growth in network services and still have a shit margin. Did they overpay on PS+ Extra licensing? Or did they invest just way too much in their GaaS games that they out on ice?
Click to expand...
Click to shrink...

Bungie amortization + PS5s being discounted (so likely being sold at a loss for the quarter)
 
OP
OP
ChaosSlayer

ChaosSlayer

Member
Jul 16, 2021
816
modiz said:
Its primarily because of Financial Services subsidiary's profit dropping. They have already stated they are planning on selling it and reinvest the money in growth areas instead.
Click to expand...
Click to shrink...
Yes! The Operating Income of Sony has been impacted by the drop in the Financial Services profits, mainly due to switching their accounting standard and a one-time gain last year (regrouping unauthorized withdrawn funds)
 
Last edited:
Ariakon44

Ariakon44

Prophet of Truth
Member
Nov 17, 2020
10,257
SuperBanana said:
PlayStation has great growth but Sony Group net income is -28.97% YoY. That seems...really bad?
Click to expand...
Click to shrink...

It's in-line with their forecast for the year but their media divisions outperformed while their image sensor and financial service sectors underperformed. Their stock will probably go down tomorrow, but more because of those divisions than Playstation, which had a damn good quarter
 
Dr. Mario

Dr. Mario

Member
Oct 27, 2017
14,034
Netherlands
AwShucks said:
So am I the last person buying physical whenever possible or what?
Click to expand...
Click to shrink...
Dozens of us.gif

But margins are twice as high on digital software than physical software (maybe even more than twice given I buy my physical copies for 65 instead of 80 euros), so this doesn't equate to units very well. If you include big selling games like BG3 only having a digital version, the real proportion for games that have both versions is probably closer to 50-50 or 40-60.
 
pezzie

pezzie

Member
Oct 27, 2017
3,481
AwShucks said:
So am I the last person buying physical whenever possible or what?
Click to expand...
Click to shrink...

I still buy physical but honestlly only when there's some pretty good deals. I just buy wherever is the cheapest. Day one that means digital since I skip paying sales tax on that, unless it's a game I'm thinking of reselling, in which case physical.

I would definitely miss physical if it were to go away. I love having options on where to go for cheaper media.
 
Ariakon44

Ariakon44

Prophet of Truth
Member
Nov 17, 2020
10,257
kadotsu said:
How do you get such explosive growth in network services and still have a shit margin. Did they overpay on PS+ Extra licensing? Or did they invest just way too much in their GaaS games that they out on ice?
Click to expand...
Click to shrink...

They're spending a lot. The Bungie acquisition (plus all the other acquisitions, but those have been much smaller so far), for example, comes out of their profits, and their spending on games has increased a ton this year.
 
Xeonidus

Xeonidus

“Fuck them kids.”
Member
Oct 28, 2017
4,310
Super said:


Forecast unchanged.
Click to expand...
Click to shrink...
They still seem confident then. What's interesting is they reached 30% of their sales target for FY22 at the same time last year. This year they already reached 33%. I know it's just percentages and not raw numbers, but they're already up in that regard compared to a year ago.
 
Super

Super

Studied the Buster Sword
Member
Jan 29, 2022
6,879
Mcbel said:
No way they're gonna reach that forecast.
Click to expand...
Click to shrink...

Xeonidus said:
They still seem confident then. What's interesting is they reached 30% of their sales target for FY22 at the same time last year. This year they already reached 33%. I know it's just percentages and not raw numbers, but they're already up in that regard compared to a year ago.
Click to expand...
Click to shrink...

They are performing in the range that has let them hit those historical FY targets. They also have more than double the inventory of last year Q2, could be a photo finish.
 
Legend_Knight98

Legend_Knight98

alt account
Banned
Oct 30, 2023
148
kadotsu said:
How do you get such explosive growth in network services and still have a shit margin. Did they overpay on PS+ Extra licensing? Or did they invest just way too much in their GaaS games that they out on ice?
Click to expand...
Click to shrink...

Their profit is up 16% from a year ago.
Then you have to consider that running a division like Playstation or Xbox is different from running a company like Nintendo or any other software house. Costs are higher for everything for Playstation and Xbox.
Sony and Microsoft have to manage more employees, they have more expensive consoles to build, more advanced services that require higher costs, more advanced servers and infrastructure for online gaming, more technically advanced games, support for multiple platforms, more third party support, bigger marketing ( for Playstation at least), everything costs more for Playstation and Xbox.
 
Last edited:
Spinluck

Spinluck

▲ Legend ▲
Avenger
Oct 26, 2017
28,608
Chicago
Damn, I don't want physical games to die, but I will probably never buy a physical copy ever again.

I want people to have options but at this rate, I wonder when they decide it's not worth the money to print copies anymore.
 
poklane

poklane

Member
Oct 25, 2017
28,237
the Netherlands
Spinluck said:
Damn, I don't want physical games to die, but I will probably never buy a physical copy ever again.

I want people to have options but at this rate, I wonder when they decide it's not worth the money to print copies anymore.
Click to expand...
Click to shrink...
I think physical will still stick around for a while, but wouldn't be surprised at all if the msrp becomes more expensive than digital. I can see it becoming €90/$80 for physical and €80/$70 for digital.
 
bitcloudrzr

bitcloudrzr

Member
May 31, 2018
14,248
Spinluck said:
Damn, I don't want physical games to die, but I will probably never buy a physical copy ever again.

I want people to have options but at this rate, I wonder when they decide it's not worth the money to print copies anymore.
Click to expand...
Click to shrink...
84/16 split is rough, and if they default both systems to a DE once the Pro launches it is probably hitting over 90%. I assumed that next gen would be the last one with discs, but publishers may just release games digital only even if the drive is compatible.

poklane said:
I think physical will still stick around for a while, but wouldn't be surprised at all if the msrp becomes more expensive than digital. I can see it becoming €90/$80 for physical and €80/$70 for digital.
Click to expand...
Click to shrink...
We can only hope that other games going digital only follow AW2 instead of increasing the price.
 

pappacone

Member
Jan 10, 2020
3,175
I'll ask again, is a GTA6 release in Q1 2024 possible? I don't know how much that forecast make sense without something this big
 
Carmelozi

Carmelozi

Banned
Nov 6, 2017
2,158
ChaosSlayer Amazing thread as always, thanks for that quality work your are putting on. 🙏

Pretty impressive FY24Q2 damn. Seems they might reach their 25m milestone if we imagine Q3 will be around 10-12m units sold. Slim, bundles and black friday should help. And pretty happy to see Spider-Man 2 over 5m in 11 days, the sales will increase during the coming weeks probably.
 
Dr. Mario

Dr. Mario

Member
Oct 27, 2017
14,034
Netherlands
poklane said:
I think physical will still stick around for a while, but wouldn't be surprised at all if the msrp becomes more expensive than digital. I can see it becoming €90/$80 for physical and €80/$70 for digital.
Click to expand...
Click to shrink...
Why would they do that when people already in droves have told them that they are willing to pay considerably more for a digital license that they can't resell.
 
You must log in or register to reply here.