Japanese technology giant Sony has released its latest earnings report. It shows that PlayStation 5 console sales have decreased year-on-year in the first quarter of 2024, though revenue from its gaming division has risen by 12% overall thanks to growth elsewhere.
The newly released financial year 2024 first quarter earnings report from Sony shows that PS5 console sales have decreased to just 2.4 million units compared to 3.3 million units this time last year. That’s a fall in sales of roughly 27%.
The console is also performing roughly 46% worse than it did in the previous quarter, where it sold 4.5 million units. These latest figures fall short of the past estimate that the system would achieve 3 million unit sales this quarter.
Console sales may be down, but Sony’s gaming division is still performing well. Revenue has risen by around 12% overall largely thanks to an increase in software sales and network services (which includes PlayStation Network and PlayStation Plus sales in addition to advertising revenue) earnings.
While software sales have increased on the whole, sales of physical games have continued their downward trajectory. They generated just 20,629 million yen this quarter compared to 24,402 million this time last year. The company now states that 80% of all game software sales across both PS4 and PS5 are digital downloads.
Analysis: Heading towards a digital future?
Although short of projections, a fall in console sales like this isn’t necessarily an unusual thing. The PS5 has been on the market for almost four years now and is rapidly approaching what many would consider the middle of its life. It's understandable that consumer interest in the console would begin to plateau.
A potential PS5 Pro could also be on the way in the near future, which would likely increase sales substantially as many existing owners rush to upgrade their aging gear.
The increase in the ratio of digital game sales is a much more worrying trend. A vocal minority of players prefer to purchase physical games, though the reality is that physical game sales steadily decreased throughout the last financial year. With this pattern continuing, we are likely to see more digital-only releases and could see support for physical games wane as we approach the next generation of consoles.
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