Sony profits down despite increase in sales.
Today marks the release of Sony’s Q1 financials up to June 30, 2021 and the results are…well they require some explanation. The good news with the company is that overall quarterly sales are up 15% compared to last year, with a 26% increase in operating income.
Over on the gaming sector sales increased 2% while profit declined 33%. Why? Well very simply the PlayStation 5 is selling record numbers of consoles. According to Sony’s own reports the system has broken 10 million shipments and those units are selling out everywhere. Everyone wants to buy a PlayStation 5. And as is common with consoles not made by Nintendo, Sony is selling the PS5 at a loss to make it more affordable, while recuperating those costs through other avenues.
It isn’t shocking, nor is it expected that console hardware makes profit. Only Nintendo really does that. Sony also puts the blame on a decrease in sales for the PS4 as the hardware fades into the past, along with a decrease in sales of third party titles and their DLC.
The rest of 2021 looks pretty good for Sony and PlayStation with upcoming title releases including Ghost of Tsushima Director’s Cut, Hades, Chernobylite, the next gen re-release of Grand Theft Auto V, Battlefield 2042, Diablo 2: Remastered, and Madden 22. Among others.
Source: Sony
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