PlayStation sales rose 5.4% in Q1, but operating income dropped by 59.7%

Posted August 01, 2017

"Sales and operating revenue ("Sales") increased by 15.2% compared to the same quarter of the previous fiscal year ("year-on-year") to 1,858.1 billion yen". According to Sony, the drop is mostly because back then it had a "highly profitable first-party title" to help with sales.

Sony's fiscal first quarter profit almost quadrupled from a year earlier, boosted by its lucrative image sensor and other businesses and highlighting a gradual recovery at the Japanese electronics and entertainment company. Under the new pricing structure, the cost of an annual membership will increase by a quarter from its current £39.99 level to £49.99; the cost of a quarterly membership will increase by the same proportion, going from £14.99 to £19.99, while the fee for those choosing to play monthly is to go from £5.99 to £6.99.

It should be noted that the figure refers to shipped units to retailers, rather than the sold-through-to-consumers figure, which was reported at 60.4 million units prior to E3 2017. Operating profit rose to ¥157.6 billion ($1.43 billion). However, total downloads saw a steep decline. Comparatively, supplies of PSVR was always questionable after its launch a year ago - with scalping prices going as high as $1,000. Streaming revenue saw a 25% jump year-over-year to ¥38.443 million ($349 million).

The company said noteworthy projects to watch during the summer are include Arcade Fire's Everything Now, Foo Fighters' Concrete and Gold, Foster the People's Sacred Hearts Club, French Montana's Jungle Rules, Kesha's Rainbow, LCD Soundsystem's American Dream, Old Dominion's Happy Endings, Laurent Voulzy's Belem and albums from David Gilmour and Indochine. Sony expects to reach 78 million PlayStation 4 shipments by the end of its 2017 financial year.

Strong sales in image sensors used in mobile devices such as smartphones and the sale of a subsidiary in China that makes camera modules led to the robust earnings, the company said. Analysts had projected ¥133.3 billion ($1.2 billion). This significant increase was primarily due to increases in Financial Services and Semiconductors segment sales.