Business

Gaming division boosts Sony's results ahead of PS5 rollout

Sony will launch the PlayStation 5 (PS5), its next-generation console, at the end of 2020, but the firm is already benefiting from soaring sales in video games

Image: Sony
  • The company sold 91 million PlayStation 4 (PS4) games during the quarter – an 83% increase from a year ago;
  • The Last of Us Part 2 alone sold more than 21 million copies, a record for its exclusive gaming label;
  • Total profits were down by 1.1% over last year, a better than expected result given the pandemic’s impact over other parts of the business.

Sony announced its financial results and surprised markets by practically not being affected by the coronavirus pandemic. Its videogame division soared sales and subscriptions during stay-at-home periods, offsetting losses in other parts of the firm and sustaining a profit that was down by only 1.1% compared to the same quarter in 2019.

The gaming business “saw a positive impact from consumers nesting during the virus outbreak,” said chief financial officer Hiroki Totoki at the earnings briefing. The electronics and entertainment giant posted a profit of $2.15 billion, more than 40% above analysts expectations, according to Reuters.

READ ALSO: Disney announces Disney+ launch in Latin America for November and reports 57.5 million subscribers on the service

Revenues from its gaming segment stood at $5.7 billion, a growth of 32% over last year, while operating income for its gaming segment was $1.2 bn, up 68% in the same comparison.

The Last of Us Part 2 helped to drive sales. Photo: Playstation Studios/Courtesy

The company sold 91 million PlayStation 4 (PS4) games during the quarter – an 83% increase from a year ago. This was driven by popular game releases, such as The Last of Us Part 2, which sold more than 21 million copies, a record for its exclusive gaming label. The subscription service PlayStation Plus, meanwhile, reached 45 million subscribers as of the 30 June, up from 36.2 million users in 2019.

READ ALSO: Almost half of Brazilian gamers are women, shows survey

PS5 will arrive at the end of 2020

Sony will launch its next-generation console, the PlayStation 5 (PS5) at the end of the year. The company did not specify any release date yet, but the market expects the arrival of the new console between November and December, ahead of the holiday shopping season. It said it has addressed problems with its supply chain, previously affected by the pandemic, so that it can ramp up production ahead of its launch. 

READ ALSO: Argentine etermax wants to hire 120 new talents and establish itself as a reference in in-game ads and AI solutions

“Although factors such as constraints due to employees working from home and restrictions on international travel remain, necessary measures are being taken and preparations are underway with the launch of the console scheduled for the 2020 holiday season,” the company said. “We aim to continue to enhance and expand user engagement as we approach the launch of PS5”.