Sony’s Games & Network Services (G&NS) division has performed strongly in fiscal year 2024-2025 (as of March 31, 2025), even though PlayStation 5 (PS5) sales have seen a decline. The company has boosted its profits by focusing on software, digital services, and subscription models, proving that content and services now matter more than hardware in the gaming industry. So what’s full story? How Sony made profit? have a look at below:
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PS5 sales fall, but profits rise
Sony sold 20.8 million PS5 units in the last fiscal year (2023), but this year the figure fell to 18.5 million. That is, a decline of about 11%. The reason for this is said to be the next stage of the PS5 lifecycle, as console sales usually slow down a few years after launch. Apart from this, sales have also been affected due to supply chain challenges and US-China tariffs.
But interestingly, despite the decline in hardware sales, the operating income of Sony’s G&NS division grew by 43% to 414.8 billion yen (about $2.8 billion). This growth reflects the company’s reliance on software and network services.
Games and network services increased profits
Sony sold 303.3 million games this year, up 6% from last year. This was largely due to third-party games like Helldivers 2, which set a record by selling 12 million copies in just 12 weeks. The reason for the success of this game is its live service model, where regular updates and downloadable content (DLC) keep players engaged for a long time.
Apart from this, revenue from PlayStation Plus has increased by 23%. The number of PlayStation Plus subscribers has reached 124 million, up 5% from last year. However, after the increase in subscription prices in some countries, the reaction of the users was also negative, but the popularity of the service remains intact.
Growing trend of digital gaming and subscription model
Nowadays gamers are preferring to buy digital games instead of physical copies. Sensing this trend, Sony has emphasized on its digital store (PlayStation Store) and subscription services. The game catalog has been expanded in the Extra and Premium plans of PlayStation Plus, giving more value to the users.
Apart from this, the launch of PS5 Pro was also beneficial for Sony. Although it is priced at $699.99 (about Rs 58,000), high-end gamers liked it very much. This gave Sony more per unit profit than hardware.
Strategy ahead: Exclusive games and live services
Sony is set to launch several big games next year, including Ghost of Yotei (sequel to Ghost of Tsushima), Marathon (Bungie’s new live service game), and Stellar Blade (PC version). Through these games, the company wants to boost PS5 sales again.
However, as reported Sony has had mixed success in live service games. While Helldivers 2 was a hit, games like Concord flopped. Apart from this, delays in some live service projects and executives like Jade Raymond of Haven Studios leaving the company are also a big matter of concern.
Future Challenges: Tariffs and subscriber retention
Financial year 2024-25 was quite good, but FY 25-26 could be challenging as Sony may suffer a loss of 64 billion yen (about $640 million) due to tariffs imposed on products imported from China in the US. To avoid this, the company is considering starting the assembly of PS5 in the US and also notified the customers that we are going to hike the price of PlayStation and other related gaming accessories soon up to 25%. Depending on the new prices, Sony will either lose some customers or somehow manage to make a profit!
Apart from this, users are also angry due to the removal of some popular games from PlayStation Plus. So now Sony will have to take care that the number of subscribers does not decrease, as this is its main source of income.
The gaming industry is changing rapidly and Sony is the boss of this segment and will try its best to keep pace with this change. If the company continues to implement its strategy in favor of customers, then it will continue to dominate in the coming years and the company will also be able to earn a good profit.
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