Sony Sells Record 6.3 Million PlayStation 5 Units in Q1 2021
Sony Corporation has reported that it sold 6.3 million PlayStation 5 consoles in the first quarter of 2021, breaking all previous records for game console sales in this period. This suggests the ongoing supply shortage has finally been resolved as the console continues to gain popularity. In the same period last year, Sony only managed to sell 2 million PS5 units. However, Sony’s highest sales figure for the console came in the previous quarter with the Christmas buying rush, when it sold a staggering 7.1 million units.
Despite this success, an unexpected decline in software sales has led Sony to lower its sales targets. Though hardware sales remain popular, the company has struggled to maintain the same level of profitability in the software sector. In particular, Sony’s in-house developments experienced a 33% drop in sales compared to the same quarter last year. This is an unexpected setback, as Sony’s game sales are a significant part of its revenue. The last major release from PlayStation Studios was “God of War: Ragnarök”, which was launched in November.
Sony’s recent DLC release for its action game “Horizon: Forbidden West” has encouraged Sony loyalists to purchase the console. As more games become available to the increasingly growing PlayStation 5 user base, Sony can expect to see an increase in sales. Some of these games are exclusively designed for PS5, such as the Horizon: Forbidden West DLC, contributing to the console’s profitability. Sony has reported that its entertainment division made a total profit before taxes of 1.67 billion euros for the fiscal year, a decrease of a third over the previous year. However, their music business exceeded expectations, earning a profit of 1.76 billion euros.
The total profit for Sony in the past fiscal year was reported to be 8 billion euros, a slight improvement on the previous year’s profit. With the improved availability of PS5, Sony hopes to capture a bigger share of the gaming market going forward. The company expects PlayStation 5 sales to grow as consumer demand for the console increases, making it more important for Sony to invest in PS5-exclusive releases to drive demand for the console even higher.
In conclusion, Sony’s recent quarterly financial results indicate that the company has overcome its PS5 supply constraints, enabling it to realize a new record in PS5 sales. Much remains to be determined, however, in terms of whether Sony can keep up with demand and whether it can continue attracting customers towards the PlayStation 5 for years to come.
