PS5 hardware sales decrease year-on-year as digital game purchases rise

Console Games, Other

Sony’s Latest Earnings Report Shows Decrease in PS5 Console Sales

Japanese technology giant Sony has released its latest earnings report, revealing a decline in PlayStation 5 console sales in the first quarter of 2024. However, the overall revenue from its gaming division has increased by 12% due to growth in other areas.

The financial report for the first quarter of the 2024 fiscal year shows that PS5 console sales have dropped to 2.4 million units, down from 3.3 million units in the same period last year, marking a decrease of approximately 27%.

Compared to the previous quarter, where 4.5 million units were sold, the console’s performance has decreased by about 46% in the latest quarter. These figures fall short of the initial estimate of 3 million unit sales for this quarter.

Despite the decline in console sales, Sony’s gaming division is still performing well, with overall revenue increasing by around 12%. This growth can be attributed to higher software sales and network services earnings, which include revenue from the PlayStation Network, PlayStation Plus, and advertising.

While software sales have seen an increase, sales of physical games have continued to decline. This quarter, physical game sales generated 20,629 million yen, compared to 24,402 million yen the previous year. Sony reports that 80% of game software sales for both PS4 and PS5 are now digital downloads.

Analysis: Heading towards a digital future?

A decline in console sales after a few years of release is not uncommon, especially as the PS5 nears the midpoint of its life cycle. Consumer interest may start to plateau as newer technologies and models are anticipated, such as a potential PS5 Pro.

The increasing shift towards digital game sales is a concerning trend, despite some players still preferring physical copies. With a steady decrease in physical game sales over the last year, it is likely that more games will be digital-only in the future, potentially reducing support for physical media as we move towards the next console generation.