Sony Interactive Entertainment (SIE) has reported its earnings for the fiscal year ending March 31, 2024 (FY24), revealing a mixed performance across its hardware and software divisions. The company sold 2.8 million PlayStation 5 units in the fourth quarter, bringing the total number of PS5 consoles sold during FY24 to 18.5 million. This marks an 11 percent year-on-year decline compared to the 20.8 million units sold in FY23. Despite the downturn in hardware sales, Sony achieved record-high revenue for the Game and Network Services segment, propelled by substantial growth in software and network services.
In FY24, total revenue for SIE reached 4.67 trillion yen (approximately 31.5 billion USD), reflecting a 9 percent increase year-on-year. Operating income rose sharply by 43 percent to 414.8 billion yen (about 2.8 billion USD), driven largely by the expansion of software sales, especially non-first-party titles and downloadable content, as well as a consistent increase in network service revenues. Notably, digital software sales and add-on content outpaced physical game sales by a significant margin, with digital downloads making up 76 percent of full game purchases during the fiscal year.
Full FY2024 Performance Breakdown
Revenue and Profitability
- Total sales: 4.67 trillion yen (+9% YoY), bolstered by software and network services.
- Operating income: 414.8 billion yen (+43% YoY), thanks to increased user engagement and software sales.
- Adjusted OIBDA: Continued growth due to high-margin digital content and services.
Key Segment Highlights
- Hardware:
- PS5 units sold: 18.5 million (-11% YoY).
- Hardware revenue: 1.13 trillion yen (down from 1.21 trillion yen in FY23).
- Software:
- Total game software sales: 2.5 trillion yen (+13% YoY).
- Add-on content alone contributed 1.34 trillion yen (+24% YoY).
- First-party software sales declined to 28.9 million units from 39.7 million in FY23.
- Total full game software sold across PS4 and PS5: 303.3 million units.
- Network Services:
- Revenue grew to 669.9 billion yen (+23% YoY), underlining the success of PlayStation Plus and other digital offerings.
- Monthly active users on the PlayStation Network increased to 124 million in Q4, up 5 percent YoY.
Key First-Party Software Performances (Lifetime Sales as of latest data)
- God of War Ragnarök: 15 million units
- Marvel’s Spider-Man 2: 10 million units in under 4 months
- Helldivers 2: 12 million units in 87 days
- Ghost of Tsushima (across platforms): 13 million units
- Horizon Forbidden West: 8.4 million units (as of May 2023)
- The Last of Us Part II: 4 million units initially, remastered version launched in 2024
- Marvel’s Spider-Man (including Remastered and PC): over 13.2 million units
Forecast for FY2025
Looking ahead, Sony anticipates a decline in total revenue to 4.3 trillion yen (-8% YoY), primarily due to projected lower PS5 unit sales and expected foreign exchange losses. However, operating income is forecast to rise by 16 percent to 480 billion yen, supported by a stronger lineup of first-party titles. Sony expects these new releases to reverse the declining trend in proprietary game software sales, reinforcing the value of its exclusive content strategy.
FY2025 Projections
- Sales: 4.3 trillion yen (-8%)
- Operating income: 480 billion yen (+16%)
- Anticipated recovery in first-party game sales
- Sustained user engagement and stable profit in the platform business
FY24 demonstrated the growing importance of software and services in Sony’s business model. While hardware sales fell short of expectations, SIE managed to sustain profitability and engagement through its robust digital ecosystem. Looking forward, Sony is betting on new first-party releases to drive growth as the PS5 enters the latter stages of its lifecycle.
