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[jm89]

They’re still paying their studio acquisitions, $360m will be paid for Bungie this FY.

Smh.

And they haven't even produced anything worthwhile outside of dlc for destiny 2.

That $3 billion could have been put to better use.

 

[Bulletbrain]

They’re still paying their studio acquisitions, $360m will be paid for Bungie this FY.

Acquisition cost is not part of operating income. That's a cash flow movement only.

 

[PeteBull]

I think 600 is the safest bet.

500 is too low. I don't think they are even making profit or it's very low profit on the 500 bass ps5.

About month left for official ps5pr0 reveal and price reveal so we will all know the hard numbers soon enough, hell they might even do official price cut of slim too since its currently very expensive, currently ps5slim digital is actually 50 usd more expensive than ps5 digital was at launch rofl

https://www.bestbuy.com/site/sony-playstation-5-slim-console-digital-edition-white/6566040.p?skuId=6566040

 

[TheGodfather07]

Surely there will be price cut this year? The pro will be $499. The standard disc drive PS5 gets cut to $399 and the digital to $299.

 

[Skifi28]

Surely there will be price cut this year? The pro will be $499. The standard disc drive PS5 gets cut to $399 and the digital to $299.

In a world where the 1TB Series S is being sold for 350, it ain't happening.

 

[PeteBull]

In a world where the 1TB Series S is being sold for 350, it ain't happening.

Xbox series is selling terribly tho, series s being no exception, so it shouldnt be benchmark to aim for

 

[TheGodfather07]

In a world where the 1TB Series S is being sold for 350, it ain't happening.

There has to be some sort of price cut though, otherwise sales will decline faster than usual. Knowing sony, they will probably only cut $50 off both models.

 

[Skifi28]

Xbox series is selling terribly tho, series s being no exception, so it shouldnt be benchmark to aim for

Exactly, Microsoft is far more desperate to sell their consoles so still having to price the cut-down version at 350 tell us quite a bit about the profit margins of hardware. There ain't no way a PS5 can be sold at 300 without Sony losing a significant amount of money.

There has to be some sort of price cut though, otherwise sales will decline faster than usual. Knowing sony, they will probably only cut $50 off both models.

I don't disagree, I just find 300 very unrealistic for the foreseeable future.

 

[PeteBull]

To me true benchmark will be 2025 right after gta6 launch, u wont get that game on pc for at least 2 years so 2027 maybe even it will only come alongside ps6 so end of 2028 or in 2029, and we all know very well xbox barely selling any games, which means most of gta6 copies gonna be sold on playstation, for ps5/pr0, that should give huge bump in console sales, maybe additional 10m units even, year over year.

 

[PharaoTutAnchAmun]

Layoffs to appease the share holders when?

Gaming, tech in Japan, stocks, just all on fire. It really feels like the bubble is about to burst because expectations are just way too unrealistic.

That was a few days ago, as off today the stocks are rising today all over the world. So a lot of drama for nothing...

 

[Woopah]

If NPD is any indicator PS5 is the one that sells well, I guess sony simply overshipped a bit.

That's what I'm thinking. It is likely PS5 sold noticeably more than Switch this quarter in the US and and Europe, and I'm not convinced that Switch's lead in Asia cut the lead down to 300,000.

So possibly there were lots of PS5s left from the 4.5 million shipment last quarter.

 

[TheGodfather07]

To me true benchmark will be 2025 right after gta6 launch, u wont get that game on pc for at least 2 years so 2027 maybe even it will only come alongside ps6 so end of 2028 or in 2029, and we all know very well xbox barely selling any games, which means most of gta6 copies gonna be sold on playstation, for ps5/pr0, that should give huge bump in console sales, maybe additional 10m units even, year over year.

GTA is gonna sell so many PS5 consoles. I've got a bunch of friends who hardly play videogames telling me how they will get a PS5 for GTA VI

 

[nowhat]

I don't think they are even making profit or it's very low profit on the 500 bass ps5.

But since it's Sony we're talking about... what about the Mega Bass PS5?

 

[Elios83]

Surely there will be price cut this year? The pro will be $499. The standard disc drive PS5 gets cut to $399 and the digital to $299.

It's unlikely to happen, they are still losing money on the digital edition at current prices, they will continue to have temporary promotions to push sales in specific moments to try to control and soften the sales decline.
They clearly prefer to have great profits with good hw sales compared to explosive hw adoption but poor profitability.
They are probably betting on the fact that huge releases in the second half of the generation + PS5 Pro making early adopters buy the system again will be enough to have acceptable hw sales going forward.

 

[Felessan]

IMO, they could do reductions once they finish paying the studio acquisitions they made, which to my understanding they’re still paying for.

Paying cash for aquisition has little effect on revenue and profit

500$ 4 years after launch is too expensive. PS4 was 300$ at this point last gen, and in it´s 5th year it was as low as 200$ for limited time around after the launch of Spiderman

Current situation in electronics is pessimistic for heavy price cuts, when shrink not so much reduce cost, especially accounted for inflation
GNS already has some problems with margin, and price drop of 100$ will cost them around 1.5+bil and eat 75% of their profits

 

[Woopah]

Why are console sales going down?

Specifically, Switch is still selling.

Seems like marketing plays a big role. Lets not act like armchair analysts here know everything.

Both Switch and PS5 are in or approaching the second half of their lives. It's natural for sales to decline.

 

[tusharngf]

this might reach ps3 level sales

 

[jm89]

If Sony don't drop the price this year no idea how they think they can reach 18m shipped this FY. Can't see pro moving crazy numbers.

 

[Hero of Spielberg]

It's unlikely to happen, they are still losing money on the digital edition at current prices, they will continue to have temporary promotions to push sales in specific moments to try to control and soften the sales decline.
They clearly prefer to have great profits with good hw sales compared to explosive hw adoption but poor profitability.
They are probably betting on the fact that huge releases in the second half of the generation + PS5 Pro making early adopters buy the system again will be enough to have acceptable hw sales going forward.

Will be interesting to see what happens. I wouldn’t be surprised to see massive PS5 price drop for GTA6 launch and a new Xbox console. Very different strategies both based around the release of the biggest game in over a decade

 

[LordOcidax]

Ouch, YoY is dropping hardest than the Switch in their 8 year…

 

[nowhat]

Ouch, YoY is dropping hardest than the Switch in their 8 year…

Q1 FY23 PS5 sales were up 38% YoY. Can the same be said of the Switch?

 

[Thick Thighs Save Lives]

this might reach ps3 level sales

What are you on about? PS5 sales are tracking above PS3 and are slightly behind PS4 LTD (this is only in Europe and probably ME and other smaller regions where customers are more price sensitive). In US and Japan it's tracking ahead of the PS4.

 

[Hero of Spielberg]

Q1 FY23 PS5 sales were up 38% YoY. Can the same be said of the Switch?

Of course not, the Switch launched 3 years earlier

 

[DenchDeckard]

Q1 FY23 PS5 sales were up 38% YoY. Can the same be said of the Switch?

Wasn't it up because the hardware droubt was officially over, so it saw a boost in sales? I thought it was hardware constrained in q1 2022?

 

[nowhat]

Wasn't it up because the hardware droubt was officially over, so it saw a boost in sales? I thought it was hardware constrained in q1 2022?

Of course. Just that numbers and especially percentages, in and of themselves, can often be quite meaningless without some context. This definitely is the case with YoY sales.

 

[LordOcidax]

Q1 FY23 PS5 sales were up 38% YoY. Can the same be said of the Switch?

The PS5 sold only 300K more than the Switch in their 8 year… What are you talking about?

 

[nowhat]

The PS5 sold only 300K more than the Switch in their 8 year… What are you talking about?

See above. It's percentages I'm talking about, and percentages that are being reported.

 

[demigod]

There has been aggressive price drops? For a while the console was £369.99 brand new from July-December either last year or the year before, what was quite funny, as Xbox announced a price increase to £480 in the UK that same year and kept their price at £450 till November when they had a similar price drop for black Friday, it's honestly no surprise Xbox was getting massively outsold that year in the uk, when your competition is £90 cheaper for half the year.

Do you want to explain why xbox is being massively outsold in North America when they are usually $100 cheaper? There are no aggressive price drops for PS5.

 

[LordOcidax]

See above. It's percentages I'm talking about, and percentages that are being reported.

I am talking about Q1 vs Q1 2024 and Year 8 (Switch) vs Year 5 (PS5), the PS5 sales are dropping like a stone compared to the Switch… forget about 2023, we all know the sales spike was due about the end of an shortage…

 

[Astray]

GPU makers have seen a reduced increase in efficiencies from node shrinks lately, so it's not very likely that AMD would drop prices for Sony to then in turn drop prices.

Normally you'd see both Sony and Xbox drop their prices with a refreshed SKU around this time in the console lifecycle. But that's likely not happening due to GPU pricing. It's actually very impressive that they're only 1.4m behind what was a $250 unit at that respective point in the lifecycle.

 

[Fafalada]

They also need a price cut for the slim, the PS4 slim launched at a reduced price at $299 coming from the ps4 phat that was $349.

Moreover it had promotional pricing at 199 Euros in Europe in that same year (and 199$ was a thing in US the following year holliday).

 

[PeteBull]

Do you want to explain why xbox is being massively outsold in North America when they are usually $100 cheaper? There are no aggressive price drops for PS5.

I can explain it, its actually very logical, 0 quality exclusives, even if u count non-pc exclusives, so console only- its still 0 for many months, last really good game i think from MS was forza horizon, and that was still x-gen, still really good and was worth the money.

 

[DenchDeckard]

Do you want to explain why xbox is being massively outsold in North America when they are usually $100 cheaper? There are no aggressive price drops for PS5.

The xbox console business is practically dead this generation. This is what Sony is pulling numbers wise with literally 0 competition. I don't think it's good to deflect with the what about isms anymore.

 

[kazuyamishima]

Sony PS5 Doomed since 2020.

Jokes aside, the 53.5m units sold as Software are only PS4/PS5 games. SIE games on PC are not accounted.

Unit sales, 80% of that number are digital games and 20% of retail.

Revenue wise, 83.5% is digital

 

[MrA]

That's what I'm thinking. It is likely PS5 sold noticeably more than Switch this quarter in the US and and Europe, and I'm not convinced that Switch's lead in Asia cut the lead down to 300,000.

So possibly there were lots of PS5s left from the 4.5 million shipment last quarter.

over shipping that quarter seems pretty likely, sony had a reason, going for 6 million to 3 million would have looked bad (even if it wasn't), better to have 2 25% drops than a 50% drop

 

[Woopah]

over shipping that quarter seems pretty likely, sony had a reason, going for 6 million to 3 million would have looked bad (even if it wasn't), better to have 2 25% drops than a 50% drop

Plus they had already downgraded their hardware forecast, so wanted to try and reach their new forecast.

 

[Mr.Phoenix]

The xbox console business is practically dead this generation. This is what Sony is pulling numbers wise with literally 0 competition. I don't think it's good to deflect with the what about isms anymore.

It doesn't matter how much competition anyone has, at the end of the day, the only thing that matters is price.

The PS5, entering the end of its 4th year.... should not still cost what it launched at 4 years ago. This is unprecedented. This is also a clear depiction of what a lot of us have always known (including sony), "if price remains the same, the sales baseline drops".

Do you know what the only takeaway from there being 0 competition as you put it is here? Its that Sony doesn't give a fuck. That's why the price is still where its at. Its now obvious, that they aren't trying to be the fastest selling console or break any kind of of sales rate records.

 

[DenchDeckard]

It doesn't matter how much competition anyone has, at the end of the day, the only thing that matters is price.

The PS5, entering the end of its 4th year.... should not still cost what it launched at 4 years ago. This is unprecedented. This is also a clear depiction of what a lot of us have always known (including sony), "if price remains the same, the sales baseline drops".

Do you know what the only takeaway from there being 0 competition as you put it is here? Its that Sony doesn't give a fuck. That's why the price is still where its at. Its now obvious, that they aren't trying to be the fastest selling console or break any kind of of sales rate records.

So, basically. It is as many had feared. A Sony with 0 competition is bad for the consumers.

 

[Gaiff]

It doesn't matter how much competition anyone has, at the end of the day, the only thing that matters is price.

The PS5, entering the end of its 4th year.... should not still cost what it launched at 4 years ago. This is unprecedented. This is also a clear depiction of what a lot of us have always known (including sony), "if price remains the same, the sales baseline drops".

Do you know what the only takeaway from there being 0 competition as you put it is here? Its that Sony doesn't give a fuck. That's why the price is still where its at. Its now obvious, that they aren't trying to be the fastest selling console or break any kind of of sales rate records.

Well, why would you hurry if it's a one-man race lol?

 

[asdasdasdbb]

Sony made more from PS+ than even digital game sales?

 

[Woopah]

Q1 FY23 PS5 sales were up 38% YoY. Can the same be said of the Switch?

Switch was up 14% in Q1 FY23.

Sony made more from PS+ than even digital game sales?

That's right, good spot!

 

[Mibu no ookami]

Companies rarely change their forecast after just one quarter.

I think both Sony and Nintendo will struggle to hit their targets, but the PS5 Pro and a Switch price cut could help.

In terms of shipments, PS5 waa only 300,000 ahead of Switch. But I would be quite surprised if that was the case for sold to consumer.

They're only 400K units short of their target rate. The PS5 can more than cover that. Q2 will be significantly worse than Q1, but there's no reason to think they can hit their target rates once the PS5 Pro launches, even if it is on the pricier side.

 

[Mibu no ookami]

Surely there will be price cut this year? The pro will be $499. The standard disc drive PS5 gets cut to $399 and the digital to $299.

I don't think they will drop the price before GTA6 comes out. They can fully realize significantly higher revenue with GTA6 pushing sales.

If they're breaking even on hardware sales if you cut the PS5's price by 100 dollars and sell 30 million units between now and the end of next fiscal year, that's 3 billion in losses...

 

[Woopah]

They're only 400K units short of their target rate. The PS5 can more than cover that. Q2 will be significantly worse than Q1, but there's no reason to think they can hit their target rates once the PS5 Pro launches, even if it is on the pricier side.

I do think a lot rides on the Pro or a price cut. Without those actions I think they miss it, but with the Pro I see it being achievable.

 

[PeteBull]

So, basically. It is as many had feared. A Sony with 0 competition is bad for the consumers.

Competition is good, capitalism w/o competition is like communism, and lemme tell u, its no fun, i experienced it plenty in my country in the 80s, ppl were slim here coz u had one bad tasting soda kind, and chocolate had 0 chocolate in it, tasted literally like shit so barely any1 wanted to buy/eat it, like i said, fun stuff

At least we still got PC when there is steam/many more stores and its all more open/competetive, but i would love microsoft/xbox travel in time to og xbox or x360 days when they actually could post this on twitter w/o spinning anything
tldr, i wanna see xbox posting stuff like this:

and not spinning aka lie like this:

 

[Mibu no ookami]

It doesn't matter how much competition anyone has, at the end of the day, the only thing that matters is price.

The PS5, entering the end of its 4th year.... should not still cost what it launched at 4 years ago. This is unprecedented. This is also a clear depiction of what a lot of us have always known (including sony), "if price remains the same, the sales baseline drops".

Do you know what the only takeaway from there being 0 competition as you put it is here? Its that Sony doesn't give a fuck. That's why the price is still where its at. Its now obvious, that they aren't trying to be the fastest selling console or break any kind of of sales rate records.

So, basically. It is as many had feared. A Sony with 0 competition is bad for the consumers.

The price of components went up across the industry. That doesn't normally happen. Cost savings haven't been realized like they normally would be at this point in the generation.

Blaming this on Sony is a bit bewildering and has nothing to do with competition. It just doesn't make sense to lose money on hardware just for someone to play F2P games like Rocket League and Fortnite.

 

[Robb]

this might reach ps3 level sales

Is this sarcasm? They should be breezing past PS3 at the rate they’re going. The estimate for FY24 alone (18M(?)) would put them at 77M and a successor isn’t expected until, what, approximately 2028?

 

[DenchDeckard]

The price of components went up across the industry. That doesn't normally happen. Cost savings haven't been realized like they normally would be at this point in the generation.

Blaming this on Sony is a bit bewildering and has nothing to do with competition. It just doesn't make sense to lose money on hardware just for someone to play F2P games like Rocket League and Fortnite.

You are more or less completely right, there is 0 competition but also the state of the industry and economics plays in massively. They cant even afford to lower the price on the PS5 due to component costs, and they are still making losses on the hardware. A ps5 pro at $499 dollars is a pipe dream unless SOny literally throws money in the bin!

 

[PeteBull]

Is this sarcasm? They should be breezing past PS3 at the rate they’re going. The estimate for FY24 alone (18M(?)) would put them at 77M and a successor isn’t expected until, what, approximately 2028?

Ps5 will easily sell 110-120m copies, ps6 will hit soonest holidays 2028 so this will be longest gen, whole 8years, with pr0 unit and gta6 launch basically as exclusive(no pc port for few years and usually sales of multiplat games worldwide ar at max 80ps/20xbox, often even worse.
So quick dirty math-lets say gta6 sells 50m copies in first 2 years so no pc port in that time(bit conservative but lets go with that for the ease of calculating), best case scenario for xbox will be 10m copies, and on playstation 40m copies, that will move console units like there is no tomorrow

 

[Fake]

Sadly impossible with current economy in electronics and logistics.

They are selling PS5 with profit, so I wouldn't say impossible LOL.