PlayStation 5 In 'Latter Stage Of Life Cycle', No New Major Existing Franchise Releases This Year: Sony

The PS5, launched in November 2020 amid the pandemic, has achieved sales of 54.7 million units in slightly over three years.

Sony also released a set of non-white colourways for the PS5. ( Image Source :Sony )

Sony has adjusted its sales forecast for the PlayStation 5 (PS5) downwards, from an initial target of 25 million units to 21 million units for the fiscal year ending March 31, 2025. This revision follows a lower-than-expected performance in PS5 sales during the crucial holiday quarter of 2023, despite extensive promotional efforts.

During the third quarter ending December 31, 2023, Sony reported sales of 8.2 million PS5 units, marking an increase from the 7.1 million units sold during the same period the previous year. However, this growth was insufficient to meet the company's ambitious sales target.

A Decline In Sales?

As reported by Bloomberg, Naomi Matsuoka, Senior Vice President at Sony, acknowledged the changing dynamics of the PS5's sales trajectory, anticipating a decline in sales pace starting from the next fiscal year, beginning April 2024.

"As we look ahead, the PS5 will transition into the latter stage of its life cycle," stated Matsuoka. "Consequently, our focus will shift towards achieving a balance between profitability and sales. Consequently, we anticipate a decline in the annual sales pace of PS5 hardware starting from the upcoming fiscal year."

The PS5, launched in November 2020 amid the pandemic, has achieved sales of 54.7 million units in slightly over three years. With Sony now signaling the commencement of the console's second half of its life cycle, speculation about the next-generation console, potentially the PS6, naturally arises.

In gaming developments, anticipation surrounds the possibility of Hideo Kojima's new project, "Physint," speculated as a potential launch title for the PS6. While Kojima Productions is expected to commence work on the game following the release of "Death Stranding 2" in partnership with Sony, the projected release window for "Physint" extends to as late as 2027 or 2028, considering Sony's recent comments on the PS5's life cycle.

No New Major Franchise Releases

Sony has further indicated its intention to withhold the release of major titles from existing PlayStation franchises until after April 2025. This decision rules out imminent releases of highly anticipated sequels such as "God of War Ragnarok" and "Marvel’s Spider-Man 2," as confirmed during the company's third-quarter fiscal year 2023 earnings presentation.

Hiroki Totoki, President, Chief Operating Officer, and Chief Financial Officer of Sony Group, emphasized the company's commitment to producing high-quality content and developing live service games. However, he clarified that there are no plans to introduce new major titles from existing franchises in the next fiscal year, which begins on April 1, 2024, and ends on March 31, 2025.

While this directive encompasses flagship titles like "God of War" and "Marvel’s Spider-Man," it does not extend to new intellectual properties or less significant existing franchise titles.