Shulou(Shulou.com)11/24 Report--

CTOnews.com August 14 news, Sony's latest financial results show that PS5's profitability may be in crisis. Due to changes in promotions in different regions and sales channels, Sony estimates that the profit margin of its PS5 hardware will decline, and the cost of production may exceed the cost of sales to some extent. It is unclear whether Sony is still selling PS5 consoles in a profitable way, or whether it will be able to remain profitable in fiscal year 2023.

Sony shipped 3.3 million PS5 units in the first quarter of fiscal 2023 (April to June), slightly lower than expected, according to the results. To boost sales of the PS5, Sony cut the price of the PS5 in July, reducing its price in almost all markets except the United States by about $50, a reverse adjustment after Sony raised the price of the PS5 in the global market last year.

For now, Sony is more focused on achieving its ambitious goal of shipping 25 million PS5 units in fiscal year 2023 than profitability. If this goal is achieved, total PS5 shipments will reach 63 million units by March 2024.

CTOnews.com noted that Sony's results also mentioned the impact of the sales channel mix on profitability, where the sales channel portfolio, that is, PS5, is sold, and that Sony earns more profit from selling PS5 from its retail channels directly to consumers, such as the PlayStation Direct store, than from retailers such as Best Buy and Amazon.

According to the latest data, PS5 has shipped 41.7 million units worldwide, lagging behind the 43.7 million shipped by PS4 in the same period. As for increasing profitability, Eric Lempel, a Sony executive, has said, "We expect (PS5) to be the most successful and profitable console generation we have ever had."

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