Sony has announced that the PlayStation 5 is approaching the “final phase of its lifecycle,” as detailed in the company’s latest financial report. This information was reported by Kotaku, based on an article from Bloomberg.
Why This Matters
The Sony financial report not only sheds light on the current, somewhat disappointing sales figures but also provides insights into the company’s PlayStation strategy for the coming years.
The Details
Sony’s financial report for the fiscal year 2023/24, which ended on March 31, was released last Tuesday. Among the usual financial jargon, one significant announcement stood out: the PlayStation 5 is entering the last phase of its lifecycle. This statement, according to Kotaku and Bloomberg, was made by Sony’s Senior Vice President Naomi Matsuoka. The report specifically mentions the “second half of the lifecycle.”
This announcement indicates an impending strategy shift for the current console generation. As the PlayStation 5 approaches the latter half of its lifecycle, Sony aims to “focus more on a balanced relationship between profitability and revenue,” according to Matsuoka.
Console Generation Lifespan
The average lifecycle of a PlayStation console is now around seven years. Let’s recap:
- The PlayStation 3 was released on November 11, 2006.
- Almost exactly seven years later, the PS4 hit the market on November 15, 2013.
- The current PlayStation 5 followed on November 19, 2020, maintaining the seven-year gap.
Historically, this places us roughly at the midpoint of the PS5 era.
Declining Forecasts
The past fiscal year did not meet Sony’s hardware expectations. Approximately 20.8 million consoles were sold, falling short of the original forecast of over 21 million units. Year-over-year, the gap widens significantly, with console sales down about 29% compared to Q1 2023. The sales forecast for the upcoming fiscal year has also been adjusted downward, from an expected 25 million PlayStation 5 units to 21 million.
Future Prospects
Interest in the PS5 during the latter half of its lifecycle is expected to be bolstered by the improved Pro version. Just about a week ago, new details emerged about this new PlayStation, which is anticipated to be released by the end of 2024. More information can be found in the linked article above.
