SIE raised PS5 prices after the yen staged an epic rally against the dollar, euro and yuan, and Sony Group shares plunged.
It's worth mentioning that Sony Group operating income declined 7% in FY23, cash reserves dropped by ¥167 bn, debt almost doubled in just two years, and Pictures and I&SS cut their profit forecasts in the second quarter of FY24.
If SIE permanently dropped PS5 prices to 299-399, Yoshida (Chairman, 1959) and Totoki (CEO, 1964) would be cooked.
They are leaning on PlayStation to buoy the whole conglomerate's financials for the next several years, and cling to power.
Their ambition has done serious damage to PS5 in Europe and Japan.
Last year, sales declined 20% in Europe, where the PS5 is trailing the PS4 by 7 million, and 43% in Japan.
However, China is making PS5 hardware sales unpredictable.
Jim Ryan had the foresight to invest in China, and SIE is starting to reap the rewards.
Jim Ryan prioritized Japan over Europe, his own territory, because Japan was #2 in overall PS Store spending.
Japanese PlayStation players spend a lot of money on F2P and digital games (Source: SIE, 2022)
Jim Ryan retired in March 2024. The PS5 was on track to sell 13 million in Japan, a significant improvement over the PS3 and PS4.
Ironically, the Japanese executives have surely ruined PlayStation chances of recovery in Japan.
LTD
PS5 5,459,563 (Mar 31, 2024)
PS4 4,536,525 (Apr 2, 2017)
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LTD
PS5 6,718,977 (Mar 10, 2025)
PS4 6,505,208 (Mar 11, 2018)
PlayStation has made $21 bn since 2014. Where did the profit go ?