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Sony’s standard PS5 has become profitable, but the Digital Edition is still sold at a loss

In context: Few consoles are profitable immediately after launch, and PlayStation 5 is no different. Eight months have passed since the PS5 was released, but only now has the standard version of Sony’s console become profitable or rather not sold at a loss. As for the Digital Edition, it seems that Sony still has to wait a little longer before making money.

Sony recently held its revenue call for the first quarter of 2021, in which Hiroki Totoki, Sony’s CFO, announced that the PlayStation 5 Standard Edition ($ 499) would no longer be sold at a loss. When it comes to Digital Edition ($ 399), it is still not profitable. However, this loss is offset by hardware sales, including peripherals, accessories and PS4.

Compared to the PS3, which took four years to become profitable, the PS5 was much faster and only took eight months. It̵

7;s still slower than the six months it took for the PS4 to generate profits, but not by much.

By April 2021, PlayStation 5 had already sold 7.8 million consoles, increasing to 10 million last week alone. Nevertheless, Sony plans to sell many more PS5 consoles, increasing the total sales to 22.6 million by the end of this financial year (March 2021 to March 2022).

But not everything is good news in Sony’s latest earnings report. The number of PlayStation Plus subscribers dropped to 46.3 million from 47.6 million in the last quarter, as monthly active users also fell from 109 million to 104 million.

According to Serkan Toto, CEO of Kantan Games, this is due to the COVID-19 pandemic, which is delaying the release of many games that could increase hardware sales and PlayStation network subscriptions.

Given the company’s expectations, Sony believes that demand for PS5 consoles will remain high during the financial year, but the ongoing chip shortage could adversely affect Sony’s plans. Some argued that this shortfall may well last for another two years, but there are also some who are much more optimistic and expect to see a few industries normalize by the end of 2021.

Masthead credit: Kerde Severin

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