Sony admits PS5 is ENDING!
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 Published On Feb 15, 2024

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3:13 - The Raw Numbers
10:00 - Too much money
14:57 - Going multiplat?

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Script:
FY2023 Results:

8.2 Million PS5 Shipped for the Quarter

PS5 at 54.8 Million Lifetime

Spider-Man 2 has sold 10 Million Units

123 Million Monthly Active Users

16.2 Million 1st Party Games Sold in the Quarter

Digital Software ratio 66%

Spider-Man 2 sold 10 million copies

Sales projections reduced from 25 Million to 21 million. They sold more PS5’s in the third quarter last year thanks to Spider-Man 2, the PS5 Slim and strong third party sales.

Because of this, Sony is going to focus on making and selling PS5 games over making new hardware or pushing the hardware.

“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 will start falling from the next fiscal year.”

This is where people are freaking out:

Sony added it has no plans to release “any new major existing franchise titles” in its next fiscal year.

Studio Management:

"Everyone is working really hard to fulfill their responsibility to try to optimize the business, and I understand that," the CEO said. "But overall growth and sustainable profitability for increasing margins… how will that translate to these goals?"

"I don’t think people understand that deeply," Totoki continues, "I think that is the problem of the organization." The chairman then goes on to praise the developers working in PlayStation's studios: "People who work in the studios have very high motivation. They’re very highly motivated, they’re very good people, and they have great creative minds and knowledge of live streaming."

However, having said that," the CEO adds, "when it comes to the business, I think there is room for improvement. And that’s to do with how to use money, the schedule of development, and how to fulfill one’s accountability towards development”

On First Party Games:

“In the past, we wanted to popularize console and the 1st party titles' The main purpose was to make the console popular. It is true, but there is a synergy to it. So if you have strong first party content, not only with our console but also other platforms like computers, 1st party can be grown with multiplatform and that can help operating profit to improve. So that is another one we want to proactively work on.

I personally think there are opportunities out there for improvement of margins, so I would like to go aggressive in improving our margin performance.”
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