The PlayStation 5, despite strong initial sales, has fallen short of Sony’s expectations, leading the company to declare the console is entering the “latter stage” of its life cycle. This announcement, coupled with a lowered sales forecast for the current fiscal year, suggests the PS6 may be closer than we think.
Is the PlayStation 5 entering its swansong years?
Sony had initially set an ambitious target of selling 25 million PS5s by March 31, 2025, but has now revised that number down to 21 million. This revision comes after holiday 2023 sales fell short of expectations, despite aggressive promotions. While sales did increase year-over-year, reaching 8.2 million units in the third quarter, it wasn’t enough to meet Sony’s lofty goals.
“Looking ahead, PS5 will enter the latter stage of its life cycle,” said Sony senior vice president Naomi Matsuoka. “As such, we will put more emphasis on the balance between profitability and sales. For this reason, we expect the annual sales pace of PS5 hardware to start falling from the next fiscal year.”
With the PS5 launched in November 2020 and now reaching its “latter stage,” industry speculation naturally turns to the next generation. With the console turning four years old this November, the PS6 seems like a logical step in the near future. While Sony hasn’t officially confirmed anything, it wouldn’t be surprising to see announcements or teasers within the next 12-18 months.
The PS5’s performance, while respectable, hasn’t quite matched the success of its predecessor, the PS4. Supply chain issues and ongoing chip shortages likely played a role, hindering wider availability and potentially impacting sales.
Regardless, the announcement of the PS5’s “latter stage” marks a significant shift in Sony’s strategy. As profitability takes centre stage, expect potential price adjustments and a renewed focus on maximising value from existing hardware. Meanwhile, anticipation for the PS6 and what it might bring will undoubtedly grow in the coming months.
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Source: Bloomberg
