PS5 Sales Will "Gradually Decline", Sony Expects; PS Business Model Has "Significantly" Changed Since PS4
Sony expects PS5 sales to gradually decline as the console has entered the second half of its console cycle.
wccftech.com
During the conference call with investors, Sony talked about PS5 sales with the company's financial General Manager, Sadahiko Hayakawa, saying that the PlayStation business model has significantly changed since the release of the console's predecessor - the PlayStation 4.
In previous generations, including that of the PS3, Sony was focused on increasing software sales in relation to new hardware. According to the executive, the PS4 console cycle can be seen as a transition period to a business model focused on platform playtime. "Looking at the console cycle, we think that PlayStation business model has changed significantly since the launch of the PS4", Hayakawa told investors.
"The business model up to and including the PlayStation 3 was focused on increasing the number of software units sold in relation to newly sold hardware for each console generation. After a transition period during the PS4 generation, the PS5 model has shifted to where playtime on platform has increased due to expansion of the user community beyond console generations. Due to this change in business model, during the PS4 for generation, we were able to significantly grow profits in this segment, thanks to rapid digitalization and the expansion of network services."
"As we enter the second half of the console cycle, we expect the number of new PS5 units sold to gradually decline. However, by steadily maintaining and expanding the consistently increased number of active users and user engagement while also strengthening control over business costs, we believe that we will be able to steadily increase sales and profits on the PS platform going forward."