- Sony has stated that the PS5 should remain profitable throughout the current fiscal year.
- However, the company believes rising memory costs will impact hardware profitability during the next fiscal year.
- PlayStation intends to monetize its current install base to make up for lost profits on the hardware side.
Sony recently reached yet another major milestone with the PS5, bringing it closer to the PS4’s sales within the same time period. The console is also profitable following a recent price hike.
According to Sony, this profitability will likely be maintained throughout FY25, but the future is anybody’s guess. The company states that rising memory costs could disrupt current profitability.
Why it matters: Console hardware has only become more expensive as time has gone on during this generation. Sony is currently in a good position with the PS5, but this could soon change.
Speaking during the company’s latest earnings call, CFO Lin Tao discussed the profitability of the PS5.
She stated that Sony already has plenty of stock saved up for this fiscal year, so profitability should remain consistent for the next two quarters. However, the future is uncertain.
Lin Tao stated that fluctuating memory prices will certainly leave an impact on profitability over the next fiscal year, so Sony will explore other avenues to maintain the profitability of the overall business.
At present, the company intends to monetize its existing PlayStation user base to make up for rising hardware costs. In particular, the CFO pointed to network services and first-party titles as potential areas that could make up for lost money on hardware sales.
With regards to memory prices, when the prices of these parts go up, that will have an impact on the profitability of the hardware for the next fiscal year and onward.
Instead of additional hardware profitability, we want to really continue to monetize the install base.
Because AI and data center demand have driven up memory costs, the PS5 will certainly become more expensive for Sony to manufacture in 2026. It will be interesting to see, then, whether the gaming giant maintains prices at the current level.
Big games like Marvel’s Wolverine and GTA 6 are also set to arrive next year, so 2026 should prove to be a pivotal year for the PS5.
What do you think about Sony’s situation? Do you think PS5 prices will go up again? Let’s discuss in the comments and on the Tech4Gamers Forums.
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[Senior News Reporter]
Avinash is currently pursuing a Business degree in Australia. For more than 5 years, he has been working as a gaming journalist, utilizing his writing skills and love for gaming to report on the latest updates in the industry. Avinash loves to play action games like Devil May Cry and has also been mentioned on highly regarded websites, such as IGN, GamesRadar, GameRant, Dualshockers, CBR, and Gamespot.
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