PS5 has only just stopped losing money for Sony but that's normal

Date:
Thu, 05 Aug 2021 14:49:30 +0000

Description:
Sony has confirmed the PS5 disc version is no longer selling at a loss, nine months after launch.

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Sonys disc-based PS5 console is no longer selling at a loss, according to the companys chief financial officer Hiroki Totoki.

Bloomberg reports that Totoki shared the news at Sonys recent earnings briefing, which comes shortly after the Japanese tech giant confirmed the PS5 is now the fastest-selling PlayStation system of all time.

For the first time since its November 2020 release, the PS5 is covering its own manufacturing costs, though the less expensive and disc-less Digital Edition is still losing money for Sony. These are the best PS5 games
available right now and some cheap PS5 game deals PS5 vs Xbox Series X : which should you pick?

That doesnt mean the company isnt making a profit, though. Bloomberg reports that the losses incurred by the PS5 Digital Edition continue to be offset by the enduring sales of hardware like the PS4, and its normal for games
consoles to sell at a loss in the early months of their life cycle.

The PS4 , for instance which has now sold over 116 million units worldwide didnt turn a profit until six months after release.

There are exceptions to the rule, of course. The Nintendo Switch began making money from the get-go, but its rare that consoles form the biggest part of a companys sales.

Microsoft has famously never turned a profit on any of its Xbox hardware, for example, with most revenue coming instead from game sales or subscription services like Xbox Game Pass . Analysis: Can the PS5 outsell the PS4?

Eventually, maybe. But not for a long time.

Despite taking a little longer to cross over into the green (or orange, at least), meteoric sales of the PS5 have ensured Sonys latest console looks set to make a financial impression comparable to its predecessor but the global chip shortage means the company is struggling to manufacture enough PS5 systems to meet global demand.

With millions still wondering where to buy a PS5 , theres no denying the interest in Sonys product, but theres little sign that manufacturing speeds will begin to match those of the PS4 any time soon.

Still, Sony has managed to sell 10 million PS5 consoles in the same time it took to sell 7.8 million PS4s, so if demand is sustained, theres every chance that in the next six or seven years the PS5 could outmuscle its older sibling for total units sold.

Until then, though, well keep waiting in the restock queues. Every new PS5 game on the way

Via Gamespot



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Link to news story: https://www.techradar.com/news/ps5-has-only-just-stopped-losing-money-for-sony -but-thats-normal/


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