Sony Downgrades PS5 Sales Forecast Despite Record Quarter

Sony Corporation has revised its sales projections for the PlayStation 5 console and is now expecting to sell 21 million units in the current fiscal year. This is down from the previously stated 25 million due to weaker-than-expected performance in its key gaming division.

This adjustment comes after Sony posted record revenue for the critical December quarter, traditionally driven by holiday sales. During this period, they sold 8.2 million PS5 consoles, bringing the fiscal year total to 16.4 million units.

Beyond the console revision, Sony trimmed its gaming division’s annual sales target by 210 billion yen to 4.15 trillion yen, reflecting the anticipated hardware sales decline. Nonetheless, the gaming business saw a 16% year-on-year sales increase to 1.4 trillion yen in the December quarter, with operating profit decreasing 26% due to hardware promotion losses and reduced first-party game sales.

Sony slightly lowered its overall company sales forecast from 12.4 trillion yen to 12.3 trillion yen. However, despite these downward revisions, the company still defied expectations by significantly exceeding analyst projections for the fiscal third quarter. Fueled by strong performance in other sectors, Sony reported revenue of 3.75 trillion yen ($24.9 billion) and operating profit of 463.3 billion yen, easily surpassing analyst estimates of 3.58 trillion yen and 428.4 billion yen, respectively.

Sony has announced a partial spin-off of its financial services business, which is expected to go public in October 2025. They plan to distribute over 80% of their Sony Financial Group shares as dividends in kind. The financial services unit’s revenue surged 1,100% in the December quarter, driven by increased insurance sales. This surge led to the move.

Furthermore, Sony reported a 21% jump in sales for its image sensor business, which supplies components to smartphone manufacturers like Apple. This positive development comes as a welcome contrast to the adjusted PS5 forecast, highlighting the strength and diversification of Sony’s operations.

While the PS5 sales forecast adjustment indicates potential headwinds in the gaming division, Sony’s overall performance remains strong. They demonstrated resilience by exceeding analyst expectations and continued to explore strategic initiatives like the financial services spin-off.

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