Sony emphasizes PlayStation user engagement as hardware sales decline

Japan’s Sony (6758.T) highlighted the robust user engagement on its gaming platform on Thursday, as PlayStation 5 console sales decline and the industry shifts towards recurring revenue models.
PS5 users are spending about 25% more compared to the PS4 era, driven by additional content and services, including PlayStation Plus subscriptions.
“This behavior demonstrates the stable and predictable nature of our revenue base,” stated gaming executive Hideaki Nishino during a strategy briefing.
Sony has restructured its gaming business management, addressing investor concerns over weak margins. Nishino will become CEO of the platform business group starting next month.
The company anticipates lower PS5 sales of 18 million units this financial year, after narrowly missing its adjusted target of 21 million units last year.
The gaming industry faces challenges from the high costs of developing major titles and slower growth, leading companies to lay off employees and pause projects.
Sony has a limited games lineup for this year, but a highlight has been the live service game “Helldivers 2,” which has sold over 12 million units since its February release.
Live service games, offering ongoing updates and play, are being launched simultaneously for PS5 and PC, noted Herman Hulst, the incoming CEO of the studio business group.
Sony, renowned for its single-player games, recently released a PC version of “Ghost of Tsushima,” originally launched in 2020.