PS4 Sales Continue to Increase as Profits Double

Here is the absolutely extraordinary thing from the chart above – not only is the PS4 approaching its 4th year on sale, but that its sales continue to increase year-over-year and, in this case, quarter-over-quarter despite no price cut. For Q1 FY2016, PS4 sales totaled 3.5 million, up half a million from a year ago and up nearly 1 million from two years ago. Thanks to the sales increase, PlayStation’s operating income has increased to ¥44 billion (€382m, $425m) – representing a 126% rise year on year.

Remember how everybody thought that, with Sony confirming the existence of PS4 Neo, sales of PS4 would slow down? Yea, that’s not really happening and a big part of that has been due to strong software sales like Naughty Dog’s exclusive Uncharted 4. Depending on how well PS4 keeps up throughout the year, sales could very well eclipse 60 million total units sold. Here’s another crazy statistic for you: PlayStation, or Games & Network Services, now accounts for 75% of Sony’s profits.

A few words of caution, however, from Sony. It’s no surprise that PS3 and Vita sales continue to decrease. Marketing is also getting more expensive which is equally no surprise, given that reaching consumers tends to get more expensive yearly. Unlike years prior, Sony is now preparing to introduce the world to PS VR which will likely result in a further increase in marketing costs since, for the past 2-3 years, their only focus has been PS4.

Q1 FY2016 (year-on-year)

  •  Sales: 14.5% increase (FX Impact: -10%)
    • (+) Significant increase in PS4 software sales including sales through the network
    • (–) Impact of foreign exchange rates
    • (–) Decrease in PS3 hardware and software sales
  •  OI: 24.6 bln yen increase (FX Impact: -1.3 bln yen)
    • (+) Increase in PS4 software sales including sales through the network
    • (+) PS4 hardware cost reductions
    • (–) Increase in marketing costs

FY2016 Forecast (change from May forecast)

  •  Sales: 5.4% downward revision
    • (–) Impact of foreign exchange rates
    • (+) Increase in PS4 software sales including sales through the network
  •  OI: Remains unchanged from the May forecast
    • (+) Increase in PS4 software sales including sales through the network
    • (–) Negative impact of foreign exchange rates
    • (–) Increase in marketing costs

Discuss:

Do you think PS VR will be a boom to Sony’s bottom line?