PlayStation Announces Q1 Decline in Earnings

Sony’s most recent quarter saw lifetime PlayStation 5 shipments hit 21.7 million systems, while the company’s Game & Network Services sector reported a decline in sales and operating profitability.

According to Sony, 2.4 million PS5 systems were supplied during the first quarter of FY2022, which concluded on June 30, 2022. This is both up 0.4 million from the preceding quarter that ended on March 31, 2022, and up 0.1 million from the same quarter a year earlier.

Although the firm observed a noticeable decline in software sales and PlayStation Network monthly active users, hardware sales remained mostly stable. Sales of PS4 and PS5 complete game software fell from 63.6 million units sold during the same period last year to 47.1 million units in the first quarter.

Drop in sales is raising concerns within the company | Image: Sony

Revenues of games as digital software made up 79 percent of the quarter’s total sales, up from 71 percent a year earlier. As of March 31, 2022, there were 47.3 million PlayStation Plus subscribers worldwide, an increase from 46.3 million a year earlier but a decrease from the 47.4 million subscribers during the previous quarter.

Sales for the Game & Network Services segment were 604.1 billion yen ($4.55 billion), down 11.7 percent from the same period last year. The drop in revenue was due to lower sales of first- and third-party games as well as lower revenue from third-party games’ DLC. Operating income was $52.8 billion ($398 million), a decrease of 30.5 percent from the previous year. Falling software revenues and rising first-part game production expenses were cited as the causes of the downturn.

The anticipated loss is ascribed to a drop in the sales of third-party games as well as an anticipated rise of 13 billion in acquisition-related expenditures, “primarily owing to the purchase of Bungie being completed sooner than the planned timeline.”

Muhammad Zuhair
Passionate about technology and gaming content, Zuhair focuses on analysing information and then presenting it to the audience.