PlayStation 5 Sales Reached 4.5 Million in 2020, Sony Reports 20 Percent Increase in Profits

PlayStation 5 has been mostly out of stock since it launched in November last year but Sony has somehow managed to sell 4.5 million units in 2020. Sony shared its financial results for the third quarter of 2020 ending December 31, wherein it revealed that its total operating income or profit for Q3 2020 were JPY 359.2 billion (roughly Rs. 24,950 crores) compared to JPY 300.1 billion (roughly Rs. 20,834 crores) in Q3 2019. The sales of PlayStation 5, PlayStation 4, software, and everything that falls under its Game and Network Services segment brought in the highest revenue in the quarter.

Sony, in its financial report for Q3 2020, shared that it sold 4.5 million PlayStation 5 units. This means since its launch in early November, 4.5 million units of the PlayStation 5 were sold in about a month and a half. In terms of revenue, Sony's gaming segment that includes consoles, games, and network services brought in JPY 883.2 billion (roughly Rs. 61,323 crores) and it was the biggest segment in Q3 2020. It was also significantly higher than its JPY 632.1 billion (roughly Rs. 43,884 crores) from Q3 2019.

Out of the JPY 883.2 billion total revenue, game sales brought in JPY 483.6 billion (roughly Rs. 33,573 crores) compared to JPY 347.09 billion (roughly Rs. 24,096 crores) from Q3 last year. Sony also managed to sell 1.4 million PlayStation 4 units alongside the 4.5 million PlayStation 5 units. The company's total profit jumped 20 percent to JPY 359.2 billion in Q3 2020 compared to Q3 2019.

Sony shared that though it saw an increase in game software sales, network services sales, and higher profit margins on PlayStation 4 hardware, it lost revenue due to expenses related to the launch of the PlayStation 5. It is also incurring losses due to the strategic pricing of the PS5 that is said to be priced lower than its manufacturing cost.

PlayStation 5 has only recently launched in India and is already facing stock issues. It sold out minutes after pre-orders went live. Sony's Chief Financial Officer Hiroki Totoki reportedly shared that increasing production of the PS5 amid semiconductor shortage is difficult. However, the company expects to sell more than 7.6 million PS5 consoles by March-end.

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