Sony Expects PS5 Hardware Sales to Initially Have a Negative Impact on Profits

The company expects software sales to help recoup the losses.

Posted By | On 28th, Oct. 2020 Under News


If Sony keeps on doing things the way it has been doing these past few years, it’s more or less a guarantee that the PS5 will turn out to be hugely successful for them. However, that doesn’t necessarily mean major profits for the company- at least not initially. 

Speaking during the company’s recent quarterly financial meeting (via Twinfinite), Sony’s chief financial officer Hiroki Totoki said that Sony expects its profits in the coming months to be negatively impacted by the PS5’s sales. This isn’t surprising, of course, since consoles are often sold by manufacturers at a loss, especially in their early years, which seems to be the case for the PS5 as well.

However, Totoki says that more market penetration of the PS5 will lead to more software sales, which will help recoup the losses, and that in the long-term, the PS5’s hardware sales will, of course, be profitable for Sony. 

The PS5 launches on November 12 in some regions of the world, and everywhere else on November 19. Sony recently released a launch trailer to hype up the console’s upcoming release, while several media impressions and unboxing videos have also gone up recently.

Tagged With: ,

Awesome Stuff that you might be interested in

More From GamingBolt


Copyright © 2009-2020 All Rights Reserved.