If all branches of Sony Corporation are in the green, the video games division still carries the Japanese group with historic revenues.
PlayStation’s financial results for the last quarter of 2020 set Sony to set a new all-manufacturer record in the gaming industry. Despite the launch of a new console (relatively high cost compared to its selling price), the shortages of stocks and the current health context due to the coronavirus, the turnover of video games has increased from 5 to 7 billion d ‘euros while operating profit jumped from 423 to 634 million euros: 103.7 million games were sold between October and December 2020, including 18.4 million PlayStation Studios games (4.1 million sold for Spider -Man: Miles Morales), digital sales made through the PlayStation Network (increase of 35%) represent more than 4 billion euros between October and December 2020.
Sony’s Game & Network Services Segment reported Q3 (Oct-Dec) revenues of 883.2 billion yen ($ 8.43 billion), up 40% YoY.
Operating Income for the quarter was 80.2 billion yen ($ 767 million), up 50% YoY.
Increase due to PS5 launch + strong software and network sales. pic.twitter.com/i2BVCvLAxM
– Daniel Ahmad (@ZhugeEX) February 3, 2021
Note that 63% of the games sold for the whole of 2020 came from digital. The many promotions on the PlayStation Store are not unrelated to this. Faced with this strong performance, Sony Interactive Entertainment expects the highest turnover (20 billion euros) and the highest operating profit (2.6 billion euros) in its history for its next fiscal year.
The PS5 is on par with the PS4
Sony sold 4.5 million PS5s in 2020, the same number as the PS4 in 2013. Supply difficulties throughout the first half of the year prompted the Japanese multinational to revise its targets. Instead of aiming to sell 7.6 million PS5s, the goal is now to do as well as the PS4 by selling at least 3 million consoles between January and March 2021. The latter has now reached 115 million machines in circulation following the sale of 1.4 million copies between October and December 2020.
The PlayStation Plus also becomes a significant weapon for Sony Interactive Entertainment with 47.4 million subscribers, including 114 million active users, knowing that 87% of PS5 owners are subscribed to the paid service. We do not yet know what will happen to PlayStation Now , but it is undeniable that Sony’s cloud gaming platform will undergo many improvements to attract a new audience and try to compete with the Xbox Game Pass without going in the same direction as Microsoft’s subscription.