Sony has slashed the full-year sales forecast for its PlayStation 5 console and said it plans to list its financial business next year as it focuses on entertainment and image sensors.
Sony cut its PS5 sales forecast for the year ending March to 21 million units, from 25 million units previously, after weaker-than-expected sales over the year-end shopping season.
The company said it expects a gradual decline in unit sales from the next financial year and that it does not plan to release any major franchise titles in the coming fiscal year.
Sony, which in 2023 said it was examining a partial spin-off of its financial business, said it plans to list Sony Financial Group in October 2025 and retain a stake of just under 20%.
The company’s operating profit in the October-December quarter jumped 10% to ¥463.3-billion, beating an average estimate of ¥428-billion from 11 analysts polled by LSEG, as strong performance by the financial, movies and music businesses offset weakness in games.
Known as the inventor of the Walkman, Sony has transformed from an electronics manufacturer into an entertainment and tech behemoth spanning movies, music, games and chips.
Sony sold 8.2 million PlayStation 5 units in the third quarter, which spans the year-end shopping period, compared with 7.1 million units a year earlier. Operating profit at the games business fell by around a quarter, hit by higher losses from hardware due to promotions and lower sales of first-party titles.
‘Too ambitious’
“Sony tried hard with promotions, bundles and discounts, but the sales target was too ambitious from the get-go,” said Serkan Toto, founder of consultancy Kantan Games. “In the end they will probably land closer to 22-23 million units.”
Monthly active users on the PlayStation Network, a measure of engagement with the platform, reached 123 million at the end of the quarter from 107 million three months earlier.
Read: Microsoft developing Xbox store to take on Apple, Google
Sony said it has sold 10 million copies of Marvel’s Spider-Man 2, which launched on 20 October, with the company also rolling out a slim version of the console from November to boost sales.
Xbox maker Microsoft is due to share updates on its games business on Thursday amid speculation the company will bring its titles to other platforms. — Sam Nussey, (c) 2024 Reuters