You may remember over the past year there’s been a lot of handwringing over PlayStation’s profitability. As is so often the case, this all got bundled up with Xbox’s issues, and numerous thinkpieces were written about the console market as a whole.
Well, Sony’s largely already solved the issue. In its latest earnings report – where it confirmed PS5 has shipped 65.5 million units – it revealed an astronomical increase in operating profit, up 184 per cent year-over-year.
For the three month period ending 30th September, PlayStation posted profits of ¥138.8 billion (~$909 million), an enormous increase on the razor-thin ¥48.9 billion (~$320 million) it accumulated the year prior. This is also more than double the ¥65.2 billion (~$427 million) it achieved in the previous quarter.
It’s prompted the platform holder to increase its profitability forecast for the current fiscal year, up from ¥320 billion (~$2 billion) to ¥355 billion (~$2.3 billion).
The manufacturer cited increased hardware profitability and improved third-party game sales as the reason for the change. It specifically pointed to Soulslike sensation Black Myth: Wukong as one game that significantly lifted its profitability this quarter.
Of course, it’s worth noting that the increased hardware profitability has resulted in price increases in some countries, such as Europe and Japan. We also suspect the PS5 Pro is being sold at a very large profit.
There’s also been a bunch of layoffs and studio closures. Obviously it won’t factor into these results, but Firewalk Studios and Neon Koi were recently shuttered.
So it’s not all good news, but PlayStation did need to become more profitable. While it’s always managed to amass absurdly high revenues, its margins had been razor-thin recently. It’s now streamlined the business in a way that gives it more breathing room, which is a net positive for the health of the company.
[source sony.com]
Comments 92
Not surprising with the amount push square has gone on about the ps5 pro. 5 reports a day average? Blindme!
@Blofse PlayStation News Site covering a major new PlayStation product? Well I’d never 🫠
Make shorter games Sony, that might also help with profitability. AA games and even shorter AAA games. I know im probably one of few, but games nowadays are so long. Personally, im fine with games like Astro bot.
I bet they have when you have to sell your house to afford a PS5 Pro, and have to pay 30€ for a stand that probably costs them pennies to make.
Woah-o-hiroki totoki,
Woah-o-hiroki totoki,
Woah-o-hiroki totoki,
Knees bent, arms stretched
Ra, ra, ra
@KoopaTheGamer mine just came in today. And I paid my mortgage 2 days ago… 🤷🏾♂️
@KoopaTheGamer if your house is only valued at £699 I’d suggest finding a better home
@Blofse You’re right! Kind of you to notice. I would also like to thank you Push square, for the hard work! 🙏🏼
@KoopaTheGamer Cue in the people saying how expensive it is. Just a suggestion, maybe you can go to Nvidia cards or iPhone forums. Where people are buying products more than double the price of the Pro. You’ll have a great day complaining over there i bet 😄
Sony has nailed Playstation accessories this generation, from headsets, PS portal, different controllers and face plates, people are buying them like never before
It’s all because I was stupid enough to buy that $30 stand for the Pro 😆 If you’re listening Sony, I will take a Bloodborne 60fps patch as a thank you.
@LogicStrikesAgain @DonJorginho @AhmadSumadi I think it was fairly obvious that I was exaggerating, but the point is that the device is far overpriced. I think the right course of action is to voice my opinion (even if it won't change a thing) because if everyone is okay with them asking for a ridiculous price, then it will become a norm.
But yes, video games are a luxury and Pro is kind of an enthusiast device. Doesn't change what I think of the price point, though.
@DonJorginho Of all the things to complain about the price going up on optional consumer electronics makes the least sense. You don’t need a PS5 Pro. You need groceries.
@LogicStrikesAgain I like shorter games better too. My spending habits are way down this year because I tend to buy most AA games and there just really weren’t that many this year. With how successful RE is, you’d think more developers would use that as a framework. I like RPGs and open world games too, but they just haven’t clicked with me as much this year. Feels like there were fewer notable indies too. Anyway, this is the first year in my adult like I’ve bought less than 2 games a month.
@KoopaTheGamer the thing is I don’t even think it’s ridiculous priced. I think it’s the price dictated by inflation.
@Balaam_ Im actually curious, does it affect the console negatively if you don't use the stand? Like with airflow or something?
@KoopaTheGamer Nah man, im just playing. Sometimes i just get a bit troll-y when i see the same reactions. I respect everybody's opinion, but i cant shake the bias some people seem to have when it comes to console pricing. While dropping $1400 on a phone is totally fine for them. (Not talking about you, ofcourse)
@IamJT PS5 already got a price increase due to inflation/rising component costs. The price increase of 300€ (in Europe) without a disc drive or a stand is far more than you'd expect from a mid gen refresh.
@LogicStrikesAgain I agree with you 100% that Apple and Nvidia products (specifically the higher tier stuff) are far overpriced, though.
@KoopaTheGamer I actually think inflation didnt really catch up to consoles the last few generations, compared to other consumer electronics, so its catching up now.
Also this is the first console they didnt really subsidize, probably cause they didn't think it would sell well, having experience with the Ps4 pro and being a niche product and all.
When companies dont subsidize their products, you get the real price, ofcourse with a bit of profit on top. Thats usually how products get sold. People are too accustomed to subsidized console pricing.
Well, with price increases by Sony profitability swiftly goes up, indeed.
@PorkChopExpress Im betting they will subsidize the cost of the PS6 again. They need it to quickly build up a userbase. But i do expect it to be higher than previous generations. Maybe around $599 or $649? If they set the price too high and they dont subsidize next gen, they will shoot themselves in the foot.
@Blofse
@PorkChopExpress The big difference is they aren't loss-leading with the Pro opposed to base consoles. Different target markets, different pricing strategies.
@KoopaTheGamer overpriced? Good job you are not a PC gamer then and if you are then you are conveniently forgetting exactly how much each separate component is for you to build a rig that performs to the same standard as the ps5 Pro..
Every article about the pro still astounds me how daft some people are understanding it all.
@KoopaTheGamer who knew a business would want to make profits and have a healthy business.
@PorkChopExpress I totally agree. Bring on the games, Sony! I would also like to see the Portal get some cloud playing capabilities.
@Vivisapprentice That's true. The PS5 product "family" has been very strong this gen.
@KoopaTheGamer $700 for a luxury electronic good is nothing though. A good tv is easily $1400. Consoles have been underpriced since the 90s. The Pro is not targeting people who finde $700 to be a huge expense. It’s targeting people who make that in a day or two working.
@Northern_munkey @LogicStrikesAgain Generally console makers get their profits from software, not hardware. There are exceptions to this rule, like accessories which are sold at big profits (which is kind of obvious when you look at the much discussed PS5 Slim/Pro stand, disc drive as well as DualSense etc).
Affordability (of the hardware) is one of the biggest strengths of consoles when compared to PC gaming. Especially with PS5 Pro they're inching closer and closer to the price point of a gaming PC, which is kind of alarming. Yes, you can't match the performance of PS5 Pro with a similarly priced PC, but on the other hand it offers a lot of value outside of gaming (not to mention generally cheaper games).
So is PS5 Pro actually a good deal in the end? I personally don't think it is, especially compared to quite affordable and fairly priced PS5. But obviously everyone should make their own choice, and not just listen to my ramblings.
We live in a world were people would buy the air we breath for a high price so this isn't suprising
@Zuljaras 🤣💀
Yes, youre right! They lower their prices, usually at the start of a console generation, to quickly build up a userbase. They can lower their prices, because they expect to sell in large volumes, often around 100 million units, based on previous generations. And they expect to make up for losses with the sale of software.
But with the PS5 Pro they went with a different strategy. They didnt lower their prices. Im guessing after having done the market research they concluded that the Ps5 Pro, will not sell in large volumes, similar to the PS4 Pro. So after crunching the numbers, a loss leader strategy probably didn't make sense for them in this case.
Here’s a quote from the CFO talking about the PS5 Pro: “It is a high-end product targeted at core customers, so we haven’t been eyeing a large sales plan to begin with”
@KoopaTheGamer Then all PC gamers have to be millionaires they pay the same money for a graphics card.
Then we still need a processor, ssd, case, ram, Power supply, cooling fans, keyboard, mouse and Windows if they want to play.
@Flaming_Kaiser You can always use Linux instead.
@get2sammyb
And I would add that among gamers, SONY is a kind of Apple-Eco system with many products available to fill or compete in certain niches.
There's even room to grow - they're competing both for the couch and the gamer chair. You could have a Sony screen, console and headset. It is a PC set-up.
Removed - inappropriate
@KoopaTheGamer But if you sell you IPhone you get something for it your andriod phone yeah not so much.
@KoopaTheGamer it's a fair point you make but console gamers demands for better games and more essentially games that look every bit as good as their pc equivalents mean that new consoles are only going to get more expensive. Whilst I want a ps5 Pro (I do think it is worth the asking price) I need my new steering wheel first as that is much more important to me. My friend has bought a ps5 Pro along with gt7 and he's coming round to my house sometime this coming week to play it with my steering wheel setup so I'll be able to actually see the damn thing first hand.
@Flaming_Kaiser Linux is actually pretty decent for gaming these days thanks to Wine/Proton improving a lot, and also Steam Deck for making Linux more relevant than it was before. Not worth it if you play online games, though, since some games with kernel level anti-cheat will not work on Linux.
But that's besides the point, I just wanted to mention it as a Linux user.
@IamJT "It’s targeting people who make that in a day or two working." What?
@Northern_munkey Sounds like fun! I can imagine GT7 being very impressive on PS5 Pro, especially with a wheel and maybe even PSVR2. Unfortunately racing wheels take a lot of space, otherwise I would be tempted to get one.
@Cerny dude I have a pro and I earn over 10k a month I think you misunderstood my comment 🤣
@Northern_munkey yea with current cost of living and state of retirement I would not buy a pro if I had to save up for it 🤣 maybe just my perspective though
@Blofse SEO is a thing. Would you prefer the PlayStation website cover the new Xbox Series models instead?
@IamJT I can understand that but your comment was still a total exaggeration. Made me chuckle as I read it.
Told you, they're ganking us on the prices.
@IamJT What else do you wanted to say if it‘s not „dudes look at me I earn over 10k a month, that makes me the target audience“. And someone who earns 10k a month doesn‘t call a new playstation a „luxury item“, sure you make over 10k lmao. that‘s peanuts not a luxury item for us
@Cerny I would definitely categorize it as a luxury item, but maybe I am conservative with my money. You are unnecessarily condescending and I only brought up my income because you did and were very rude about it.
@Northern_munkey It is becoming clear to me that I do not think about money the same way as this comment thread 🤣. I consider my tv and PlayStation luxury items I would not buy if I wasn’t comfortable but it’s clear that’s not how most people view them so I will stand down.
Yeah dude that sounds so out of touch. As if you need to have a 120k/year income to be able to afford a playstation. And we all know that you don‘t have that income, nobody with this income would come to a playstation site and brag about that in the comments.
It‘s like saying „if you have an income under 7000$ you can‘t have airpods“
@IamJT no you don't. Most people on this site that own a PlayStation or a PC accept they are a luxury item and are well aware that there are people that are financially worse off than they are. I've worked all my life as has my wife and we have scrimped and saved to have the nice things we didn't have when we were young. I'll never look down on people who work hard but still find it hard to make ends meet but I won't accept the lazy couch huggers that refuse to work and rely on the tax payers to supplement their life choices. You don't need to earn £700 a day to be able to afford a ps5 Pro...
@Northern_munkey I feel like we are almost in line on our thinking. I personally would have stuck with the base if I couldn’t have bought the pro with one or two days salary. I admit I seem more conservative with spending. And I agree my dad was a super hard worker and we were always broke as a kid so I wouldn’t look down on it. That is why I am conservative spending now.
@Cerny I said it’s marketed to people who made that, which in the current economic state I think is fair. Especially when you consider investing into retirement, higher cost of living etc., $700 is a luxury item. You were rude to me about not being able to afford it that’s when I said my comment. Not bragging. Just saying you misunderstood me. I think $700 on a marginal upgrade is a luxury. I would not have bought a pro if it wasn’t well within my means. You are being really confrontational about nothing though so I think we are done here 🤣. Also a lot of people in my field start at 120k and spend money like mad and will be working until they die which is wild to me.
@IamJT I don't earn 10k a month (nowhere near) but I'm quite frugal with my cash. I could buy a ps5 Pro tomorrow if I wanted to but as I've stated earlier I would like my new steering wheel first but I'll have to wait until after Xmas for that. I'm happy with my base ps5 for now so the upgrade just isn't really necessary. That steering wheel though is quite hard to resist 🤣
@Northern_munkey Imma tell you right now I bought the pro and I’m not sure it’s worth it yet 🤣 I would get the steering wheel. I almost bought one because I cannot get the last license trophy in GT7 but I’m worried it would just sit there after.
Edit: also I am very frugal too I drive a 20 year old car and my coworkers always clown me for it but it starts and gets me to work so I will drive it until it dies 🤣
@KoopaTheGamer it’s cool, man. I know you weren’t being serious.
@IamJT I was not rude about your fake income bragging, I was rude about your „the target audience are the people who make those 700 in two days“ statement. Like if any of those people on YT, reddit, pushsquare whatever who bought the pro make 700 dollar in two days. I just said that this is for sure not the target audience, you don‘t have to be rich to have a playstation pro. It‘s just 700 dollars, no luxury item, nothing for rich people and you sure as hell don‘t need 10k income to get one.
Your first comment was „dude I have the pro and I get over 10k a month“, you brought up your fake income. Anyone with that level of incoming surely drives a ***** car and wastes their time on a playstation website bragging lmao
@Cerny 🤣 we are done dude you are trying to hard your comment got deleted for being rude. It’s all good though have a good day may our next interaction be more positive 👍
If the PS5 Pro is being sold at a very large profit, I can imagine how large those profit margins must be on individual PC components, because there's no chance in hell you'd be able to build a system like a PS5 Pro (don't forget controller) for anywhere near that
@GreatAuk yea mark up is huge on a lot of tech stuff for sure.
PS5 Pro is most definitely a luxury item, my god people.
If a millionaire buys a Porsche, does that not still make it objectively a luxury item for them? The income of the person doesn't matter with regards to the categorization of the product.
While the PS5 Pro is a good deal for what you get, it's still a luxury item.
The same way getting a yacht for 500k instead of the regular million is a good deal yes, but still a luxury item.
@GreatAuk agreed and well said.
@Cerny you don't know his income is "fake" and from my perspective you are the one being the aggressor here. I think you need to take a step back and look at how your interaction went with him.
@PorkChopExpress
Actually you don't have to worry about the open gates that much. If history shows one thing, is that the majority of companies are not able to handle more money with responsibility. The will bloat up, don't invest sustainable and once the consumer is starting to hold back, the struggle and collapse. Either prices go down or income goes up, they will not be able to turn gaming into a luxury good. Not with this big market.
Look at the automotive market in China, where solid quality products dictate the (low) price and foreign premium OEMs struggle with their high price point.
Once the product gets too expensive, the market will regulate itself. Will just take some years...
@KoopaTheGamer 2 income adult household in the US here. We also have one child. Bought the ps5 pro no issues. Didn’t destroys, we aren’t in threat of being homeless, plenty of food, cars running good. Not sure this misconception where people have to pick rent or the ps5 pro. Just manage money a little bit and have an income and job that provide.
Consoles are only going to get more expensive from here on out mate
@Friendly yep, the jacked up prices even though their manufacturing costs would be decreasing definitely helps them deliver more profit.
@get2sammyb past consoles I may have bought a spare controller or 2, and maybe a 3rd party accessory. So far for my ps5 I have purchased, headphones, dual charger station, ps portal, 3 extra controllers all official Sony products. I think they got the PlayStation 5 aesthetic right, all the things look cool and must own
Profitstation.
@KoopaTheGamer Oh, iPhones and Samsung phones are also quite overpriced. Yet they keep selling. Whether you can afford a pro or not. I can buy one if I wanted to. But I don't care about the added value. I'd rather leave that 799 euros in my savings account and buy a PS6 in the future. And then I can also buy a Switch 2 from it, You're right, by the way. But saving is also an option if you really want something.
@IamJT and when I said your comment was an exaggeration I didn't mean your income..I meant about earning £700 a day to be able to afford one..
when playstation is all there is because xbox has one foot in the grave (possibly both) of course this is happening
@ThatVSMbro Oh, don't get me wrong, I could afford PS5 Pro as well. But I don't think it's worth it. It's not just about the price, but the value it offers.
@KoopaTheGamer
Why not voice your opinion on Apple phones and Nvidia graphics cards?
You've much work to do!
Follow this link to see some exorbitant prices: https://www.newegg.com/p/pl?storeName=GPUs-Video-Graphics-Cards&pageTitle=GPUs+%2F+Video+Graphics+Cards&N=100007709+4092
Good, now they can FINALLY make exclusives.
Well, a cellphone cost over $1,000. Most people get a new phone every 2- 3 years. So I think the PS5 Pro price is keeping up with the market. Still a lot cheaper than a cellphone and a good gaming pc. Now Sony needs to keep releasing great games to back it up. How about a new Jack and Daxter and Ape Escape
@LogicStrikesAgain I don't think you're the only one. I have barely finished any games this generation and even last Gen. It feels like every game has to be a open world RPG this days
I keep reaching to my back catalog of older games more and more.
@LogicStrikesAgain
I agree wholeheartedly.
Wait until next quarter when they have fully audited the concord debacle.
@Karosso75 I'm currently play RDR 1, Kane and Lynch and Sleeping Dogs on PC and having an absolute blast.
Games used to be fun and they've forgotten how to do that.
@Fishnpeas so true. i’m playing through the infamous games on my ps3. they don’t make em like they used to , ive been going back to the past more than ever this gen.
@EfYI This is a Playstation site, so I'd rather focus on Playstation products.
@KoopaTheGamer
Damn, I would have liked somebody to bond with over the sticker shock of modern day graphic cards. There are cards for sale that cost more than 5000 USD.
You write it is a bad deal - I haven't upgraded myself and are doing some form of trade-in math in my head even though I could easily just buy, I guess I ultimately agree that it is just short of an acceptable deal for me. I realise that selling my PS5 on the pre-owned market will only get me halfway there. As time passes, it isn't likely to get any better, so I am stuck wrestling with my good senses.
@EfYI Yeah, I get it. I have a low/mid-range PC with RTX3060 myself which costs more than PS5 Pro, but not by that much (it was 999€ a few years ago, so pretty much the price of PS5 Pro with the disc drive... in Europe anyway). I don't think an average user needs a RTX 4090 because you have the freedom to turn the settings down (which allows you to play games on older PCs as well). But yeah, the higher tier Nvidia cards are ridiculously expensive.
I also have an Android phone so Apple can keep their iPhones.
@Fishnpeas Maybe you're getting to old and tired to play videogames. I'm still enjoying all the new releases. They're just as fun as old games.
65 million ps5's that means only around 1% bought astrobot that's depressing
@Deathnote93 Then you don't know what we had before. The current crop of games are absolute garbage in comparison.
Fidelity has gone through the roof, yet writing, design and most importantly fun, has gone through the floor.
You can never be too old to game, but you can get too old to put up with bad quality.
I earn £17billion a year and even I can't afford a PS5 Pro.
@Karosso75 "It feels like every game has to be a open world RPG this days"
Nah. There's tons of new non-open world RPG games to play. Like these games for example:
From those games, we got:
@Deathnote93 Sometimes the older stuff just is better. Donkey Kong Country, Super Metriod, Super Mario World, Legend of Dragoon, Legend of Legaia, Parasite Eve, Koudelka, Final Fantasy 7/8/9, Breath of Fire 4. There are tons of games I see as superior as what we have now.
Whoa, not so fast. One quarter alone is just a picture, but what matters at the end of the day, is the film. Even with this quarter's good results, the trend still points downwards.
Sure, the overall situation is probably not as dire as some may have led us to believe, but one good quarter is by no means a conclusive indication that the industry challenges are fully addressed.
Well. They fired more than 1000 people and shut down one studio (London Studio, because Firewalk and Neon Koi happened in current quarter). So obviously their bottom line will look better.
It's not rocket science.
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