Rising game sales and services help PlayStation offset 21% decline in hardware revenue in Q1

Sony has released its financial report for the first fiscal quarter ended June 30, 2024. Just like other platform holders, PlayStation saw a decrease in hardware revenue.

Astro Bot

Financial highlights

• According to its consolidated financial results, Sony’s Game & Network Services segment reached ¥864.9 billion ($5.9 billion at the current exchange rate) in Q1 revenue, up 12% compared to the same period last year.
• Operating profit grew 33% year-over-year to ¥65.2 billion ($443.6 million).
• The growth was driven by increased sales of first-party games and network services (PS Plus), which helped offset a significant decline in hardware sales.

• Game sales reached ¥486.4 billion ($3.3 billion), up 19.7% year-over-year. Almost 60% of video game revenue came from add-on content (in-app purchases), followed by digital sales (29%) and physical copies (4.2%).
• The Network Services subsegment grew 28% to ¥159.3 billion ($1.09 billion), while hardware revenue fell 21.7% to ¥146.3 billion ($1 billion).
• In Q1 FY24, Sony sold 2.4 million units of PlayStation 5, down about 900k (27.2%) from the same period last year. This brings the console’s life-to-date sales to 61.7 million units.
• Full-game sales amounted to 53.6 million copies, of which 6 million were first-party titles. The share of digital units increased from 72% to 80% year-over-year.
• As of June 30, the PlayStation Network had 116 million monthly active users (MAU). This is a decrease from 118 million in the previous quarter, but an increase from 108 million in Q1 FY23.