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PS5 Price Soars Amid Memory Crunch
8 May
Summary
- PS5 sales dropped 46% year-over-year due to memory shortages.
- Sony forecasts a 6% revenue decrease in its gaming division.
- A standard PS5 now costs $650 after a recent price hike.
Sony's PlayStation 5 hardware sales experienced a significant decline of 46% in its fourth fiscal quarter, selling only 1.5 million units. This downturn is largely due to a persistent memory shortage, which has compelled Sony to increase PS5 prices twice within the past year. Consequently, the company anticipates a 6% decrease in revenue for its gaming division in the upcoming fiscal year, equating to $1.69 billion.
Despite these challenges, Sony's gaming division saw a slight increase in overall revenue for the full fiscal year 2025, reaching 4.69 trillion yen ($29.9 billion). Operating income also rose by 12 percent to 463.3 billion yen ($2.95 billion), bolstered by growth in PlayStation Network sales. The company projects a 30% increase in profits for the next fiscal year, benefiting from the absence of previous impairment losses related to Bungie and the anticipated launch of Grand Theft Auto VI.
The future availability and profitability of the PS5 remain contingent on Sony's ability to secure memory at competitive prices. The company has indicated that PS5 hardware sales for fiscal year 2026 will depend on memory procurement volumes and expects profitability to remain similar to fiscal year 2025. A standard PS5 now costs $650, a substantial increase from a year ago, as the console approaches the end of its lifecycle.
