Sony has set an ambitious target of selling 25 million PlayStation 5 consoles in the current fiscal year. This would be the highest ever for any PlayStation console in the history of the company. Today, Sony announced its second-quarter results for fiscal year 2023. At the conference, it stated that it maintains its target of shipping 25 million PlayStation 5 game consoles this year.Ā This article will explore Sony’s plans to achieve this target, including the measures it is willing to take to sell more consoles.
Sony said this will be an important milestone. Analysts and investors are paying close attention to the PS5’s market performance. Previously, Sony Senior Vice President Eric Lempel revealed in an interview with CNBC that after shortages occurred in 2020 and 2021 due to supply chain constraints, this year the PS5 will be fully stocked for the first time and will no longer be “in short supply.”
Meanwhile, Sony also cited weaknesses in its financial services and film units. It said this wasĀ causedĀ by the Writers Guild of America and other organizations going on strike. The strike was to protest against the use of AI to generate movie scripts.
Sony’s Sales Performance
Sony’s PlayStation 5 has been a huge success since its launch in November 2020, with the company announcing that it sold 6.3 million units in the last quarter alone, bringing the total number of units sold to 19.1 million. The company’s latest earnings report revealed that supply shortages are no longer a problem, with the company claiming it can now deliver a PS5 to almost anyone in the world with no wait times. Also, the PlayStation 5 game consoles added 2.3 million monthly active players compared to March 2022.
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Sony’sĀ net sales in the second fiscal quarter were 2.83 trillion yen (about $18.7 billion), a year-on-year increase of 8%. The second-quarter net profit was 200.11 billion yen (about $1.3 billion), a year-on-year decrease of 29%. In the three months ending September 30, 2023, total PlayStation 5 shipments were 4.9 million units. This is an increase of 1.6 million units from the same period in the previous fiscal year.Ā Cumulative PlayStation 5 shipments hit 46.6 million units.
Sony’s Plans to Achieve the Target
To achieve its target of selling 25 million PS5s, Sony is willing to take “necessary measures,” including offering more discounts. The company has already reduced the price of the PS5 by $50, which it says is part of its strategy to increase sales. Sony is also looking to accelerate the penetration of the market with the PS5 and has set the target for shipments in the current fiscal year at 25 million units.
Challenges and Opportunities
Sony’s target of selling 25 million PS5s is ambitious, considering the initial supply chain issues, component shortages, and game delays that were caused by the pandemic. However, Sony is confident that it can achieve this target, given the positive impact of increased sales for the console, which has started to show in engagement metrics.
Despite the PS5’s momentum, there have been no announcements about upgraded or streamlined versions of the hardware, nor have there been any announcements about new major franchises. Sony did, however, state that it aims to continue creating new IP, rolling out catalogue titles for PC, and strengthening live game service development, although the company is forecasting an overall drop in sales of first-party games in 2023.
Conclusion
Sony’s target of selling 25 million PS5s in the current fiscal year is ambitious, but the company is confident that it can achieve this target. To do so, Sony is willing to take “necessary measures,” including offering more discounts. Despite the challenges posed by the pandemic, Sony’s PS5 has been a huge success, and the company is looking to continue creating new IP, rolling out catalogue titles for PC, and strengthening live game service development.
