In its recently released quarterly report, Sony revealed to its investors that it actually sells the PlayStation 5 at a loss.
According to Sony, the “strategic price” was used to reduce the launch of the Microsoft Xbox Series X / S around the same time. The company made up for its losses with game sales and other entertainment revenue. Incredibly, the plan was rewarded with 4.5 million consoles sold in 2020 and $ 4.6 billion in game sales, which doubled the $ 2.3 billion generated from hardware sales. In addition, the PlayStation Plus subscription and other network revenues saw an overall increase of nine percent.
Unable to manufacture PlayStation 5 consoles to meet overwhelming demand, Sony is showing signs of a great fourth quarter after bringing in a record $ 10 billion profit in the third quarter, with all its segments with sales and operating revenue of 9.5 and 20 percent, respectively.
The PS5 is being sold at a loss, but Sony’s gaming segment has increased its operating revenue by 50% over the previous year.
The reason for this is the sale of highly profitable software and network services.
This was a record quarter for network sales (PS +, full game downloads, DLC / additional content). pic.twitter.com/SIKSyWpJ48
– Daniel Ahmad (@ZhugeEX) February 3, 2021
A quick statistic that I can release based on the above.
Revenue from PlayStation Plus, PlayStation Now, PSN advertising revenue and other PSN services was $ 3.5 billion in 2020.
The above items do not include sales of games or additional sales of content. Subscription revenue / network revenue only.
– Daniel Ahmad (@ZhugeEX) February 3, 2021
In case you missed it, Chaos broke out recently with the sale of the Sony PlayStation 5 in Tokyo.