Sony Interactive Entertainment (SIE) has confirmed that it expects PS5 hardware and software sales to decline this upcoming financial year.
During Sony Group's latest financial call, chief financial officer Hiroki Totoki noted: "Although the burden of acquisition related costs will ease next fiscal year, we expect profit from first-party software to decrease slightly from this fiscal year due to the impact of the decrease in sales."
One of the presentation's slides demonstrates Sony's outlook for the next fiscal year, which will run from April 1, 2024, to March 31, 2025. The presentation notes a "slight decrease" in first-party software profit and a "gradual decline" in PS5 hardware unit sales. On the other hand, profits from third-party software and 'network services revenue' (i.e. live service titles) are expected to improve.
One major reason behind this, as Totoki notes, is the confirmation that the PlayStation 5 will cross the midpoint of its lifecycle: "Regarding the PlayStation 5 hardware, which will enter its fifth year since launch," he states, "partially due to its entering the latter half of the console cycle, we aim to optimize sales with a greater emphasis on balance with profits, so we anticipate a gradual decline in unit sales from next fiscal year onwards."
Also noteworthy is the confirmation that the PS5 isn't currently due to receive any big first-party offerings over the course of the financial year. That would be titles on the scale of some of the best PS5 games, such as Horizon Forbidden West and Gran Turismo 7.
Totoki says: "While major projects are currently under development, we do not plan to release any new major existing franchise titles next fiscal year like God of War Ragnarok and Marvel’s Spider-Man 2."
While that means we likely won't see any larger first-party projects until April 2025 at the earliest, it is of course worth noting that "major existing franchise titles" would be in regards to Sony and PlayStation Studios' big-ticket releases only - and from already-existing franchises. Anything relatively smaller in scope, such as the upcoming Until Dawn remaster, should still be on the cards.
We would also wager that Sony is ramping up development on the PS5 Pro and PlayStation 6, though there's no confirmation of either in this financial call.
For more top PlayStation hardware, consider checking out our guides to the best PS5 controllers and best SSDs for PS5.
