PlayStation 5 sales fall short of expectations despite "significant" increase

Sony has reported a "significant" increase in PlayStation 5 hardware sales during the first quarter of the current fiscal year.

According to the company's fiscal report for the quarter ended June 30, 2023, PlayStation 5 hardware sales increased by 38 percent to 3.3 million units.

The news comes after Sony revealed the console has topped 40 million lifetime sales, and explained it now has the ability to meet "pent-up demand" for the console after overcoming supply issues.

Digging into the company's financials, sales within Sony's Game & Network Services (G&NS) segment increased by 28 percent year-on-year to 771.9 billion yen ($5.3 billion). PS5 hardware and sales of third-party software was largely responsible for that upswing.

Operating income decreased by 3.6 billion year-on-year to 49.2 billion yen ($342.5 million), largely due to an increase of expenses–including costs associated with the acquisition of Destiny developer Bungie.

PlayStation 5 on the rise, but Sony expected more progress

Although both hardware and software sales were up, Sony noted that players only spent 2 percent more time in-game during the quarter when compared with last year. The company is now expecting hardware sales to pick up as the year progresses, and suggested there is still room for improvement where the PlayStation 5 is concerned.

"PS5 hardware sales were 3.3 million units, a significant increase of 38 percent year-on-year. This amount is somewhat less than the expected progress toward our fiscal year sales target of 25 million units, but, due to promotions begun in July, we are seeing an improvement in the momentum of sales," it added.

The "accelerated penetration" of the PS5 is one of the company's highest priorities, and Sony still believes it's capable of selling 25 million consoles during the current fiscal year. It believes sales will be given a shot in the arm by upcoming titles like Marvel's Spider-Man 2 and major third-party release.

With that in mind, the company has upwardly revised its G&NS sales forecast by 7 percent to 270 billion yen. Its operating income forecast of 10 billion yen remains unchanged.