Sony is pursuing the goal of shipping another 3 million units of the PS5 by the end of the current quarter. After the publication of the latest annual report, it also became clear that the PlayStation 5 is being sold at a loss when viewed in isolation.
Sony announced a few hours ago that the PS5 has shipped more than 4.5 million times since launch. It is a number that can be quite impressive, but was limited by the production capacities and the limited availability.
Further deliveries should follow as soon as possible. And a number was also given today for the plans for the current quarter. Sony intends to have at least 3 million copies of the PS5 on the market by March 31, 2021, which, together with the units already shipped, would add up to a total of 7.5 million consoles. In order to achieve this goal, the production of the console needs to be increased slightly.
It is not surprising that Sony has currently sold the PS5 console at a loss, as the hardware’s selling price is currently still below the manufacturing costs. In retrospect, the PlayStation 4 was also initially sold at a loss. And as industry analyst Daniel Ahmad indicated, it took Sony several months to make it profitable.
The PS5 is being sold at a loss, yet Sony's game segment increased its operating income 50% YoY.
The reason for this is its highly profitable software and network services sales.
This was a record quarter for network sales (PS+, Full Game Downloads, DLC / Add on Content). pic.twitter.com/SIKSyWpJ48
— Daniel Ahmad (@ZhugeEX) February 3, 2021
With the sale of other products, including accessories such as controllers and cameras, the loss can apparently be roughly offset, so that Sony does not make any profits with the hardware overall, but does not have to record any major losses. The company primarily derives profits from the sale of services and games. PS Plus alone now has more than 47 million subscribers.
“The PS5 is being sold at a loss, yet Sony’s game segment increased its operating income 50% year-on-year,” Ahmad said on the subject.
The PS5 was launched worldwide in November last year. The launch price was $399 for the digital edition and $499 for the disk model.