Sony emphasizes PlayStation user engagement as hardware sales decline By Reuters

Sam Nussey

TOKYO (Reuters) – Japan sony (NYSE:) on Thursday highlighted the strength of user engagement with its gaming platform as sales of its PlayStation 5 console decline and companies in the sector look for recurring revenue.

PS5 users are spending about 25% more than they did in the previous PS4 console life cycle due to additional content and services, including the PlayStation Plus subscription option.

“These actions support the consistent and predictable nature of our revenue base,” gaming executive Hideaki Nishino said at a strategy briefing.

Sony has reorganized the management structure of its gaming business division, which is causing investor concern due to weak margins, and has appointed Nishino as CEO of its platform business division starting next month.

The giant expects PS5 sales to fall to 18 million units this fiscal year, after narrowly missing its revised target of 21 million units last year.

The gaming sector is struggling due to the cost of developing high-profile titles and slowing industry growth, with companies laying off employees and halting projects.

Sony has a slim gaming pipeline this year, but one bright spot is its live service title “Helldivers 2,” which has sold more than 12 million units since its February launch.

Herman Hulst, who will become CEO of the Studio Business Group, said that live service games with continuous and updated play are being released simultaneously in PS5 and PC versions.

Sony is best known for its single-player titles. This month, the PC version of ‘Ghost of Tsushima’, which was first released in 2020, was released.