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Sony boosts PlayStation profits despite looming PS5 launch

LordOfChaos

Member
So now we know Xbox boosted profits, Playstation boosted profits.

And that's great. A strong gaming economy is good for everyone. And with such divergent strategies too.


Sony’s gaming division is continuing to drive major profits for the company even as the PlayStation 4 era winds down. The company announced PlayStation-related revenue of 507 billion yen (~$4.9 billion) and an operating profit of 105 billion yen (~$1 billion) for its July-September quarter, respective improvements of 52 and 40 percent on the same period a year ago.

With the PlayStation 5 set to launch in a couple of weeks, normally you’d expect a significant negative impact on Sony’s books for the previous quarter as the company ramps up manufacturing before it starts to bring in more revenue. Sony does say that its profits were hit by an increase in costs, while revenue was reduced by a predictable decrease in PS4 sales. Higher game software sales and PlayStation Plus subscriptions, however, more than made up the shortfall.


Sony’s big PS4 release for the quarter was the open-world samurai adventure Ghost of Tsushima, which came out in July and sold 2.4 million copies in its first three days. Sony says it’s the fastest-selling new IP on the platform.
 

LordOfChaos

Member
They boosted profits because of Add-on content sales on PSN
It's in their financials.

It's also quoted ;)

normally you’d expect a significant negative impact on Sony’s books for the previous quarter as the company ramps up manufacturing before it starts to bring in more revenue. Sony does say that its profits were hit by an increase in costs, while revenue was reduced by a predictable decrease in PS4 sales. Higher game software sales and PlayStation Plus subscriptions, however, more than made up the shortfall.
 
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kyoji

Member
B E A U T I F U L ...

can't wait for my 2 PS5s ... Physical and Digital..

woot wooot
i barely got a physical, and you got 2... that was my plan, one for my living room and one for my bedroom/travel with. Im so jelly rn lol
 
Xbox boosted revenue in content and services by 30%.

PlayStation boosting profits over 60% is a different ballpark.
I imagine MS' internal profits for the division were up significantly as well likely not 60% but somewhere in the 40% range. The margin shift would have made up for it with content/digital making up the lionshare.
 

Warnen

Can he swing from a thread? Take a look overhead / Hey, there, there goes the Spider-Man
Well most sony Games are still heading to PS4, why wouldn’t ya.
 

Thirty7ven

Sony make cringe trainers.
40% according to the article. Not that it matters for you, I suppose.

Don’t be like that. Of course it matters.

Profit in q2 2019 was 0,605B and in 2020 it was 0,988B. How is this a 40% increase?

I don’t understand the number in the article nor do I care to question much of it because it is The Verge after all.
 
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mejin

Member
Xbox boosted revenue in content and services by 30%.

PlayStation boosting profits over 60% is a different ballpark.

 

Bryank75

Banned
It's great news... approaching 40 Billion dollars in the bank and also very very low debt..... so they could borrow another 40-50 billion if they wanted.

It's enough to buy out a sizable portion of the industry.

It's good to be underestimated.... as Al Pacino once said....

 
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