Is console hardware struggling? In the latest financial report released Tuesday, Sony revealed that hardware sales are declining, although that doesn’t spell doom for the video game conglomerate.
Hardware sales are down year over year, from 3.3 million to 2.4 million, which finance chief Sadahiko Hayakawa attributes in part to an increase in first-party software sales and the impact of foreign exchange rates. Despite this decline, Sony saw a 12% increase in overall game income due to game releases and PlayStation Plus subscriptions. The company also reported 116 million monthly active users in June, the highest for that time of year.
Sony’s performance mirrors that of its competitor Xbox, which also reported a 42% decrease in hardware revenue in its last financial report. Both companies are focusing on services like Xbox Game Pass, Cloud Gaming, and first-party software releases to drive growth.
The PlayStation, nearing its fourth year in the market, is expected to see mid-generation refreshes. While demand for new consoles has decreased since launch, Sony continues to attract users with a range of titles and services.
Video game analyst Mat Piscatella mentioned in a post that hardware sales have fallen slightly below expectations, but the release slate and price discounting have also been lighter this year.
Sony has a lineup of games for the year, including Helldivers 2, Stellar Blade, Rise of the Ronin, MLB The Show 24, and The Last of Us Part 2 Remastered. Upcoming releases like Concord, Astro Bot, and God of War: Ragnarok on PC are expected to keep players engaged.
Bungie, under Sony, is focusing on developing the new game Marathon, with plans for an unannounced title. Sony is investing in new projects to maintain its position in the gaming market.
