The first PlayStation console was released in Japan in December 1994, and the console produced by Sony remains very popular around the world. It is worth mentioning that, Sony sold 4.5 million PlayStation 5 consoles around the globe in 2020, and this fact once more underlines the popularity of PlayStation.
Interestingly, the number highlights the company’s current ability to mass-produce the console. As a reminder, it has been quite hard to buy this console since its launch in November.
It is worth noting that, the demand for the PlayStation 4 fell dramatically year-on-year, with 1.4 million units shipped in the October-December quarter. As a reminder, during the same period in 2019, the company sold far more PlayStation 4 consoles. Interestingly, Sony actually managed to sell fewer PS4s in the holiday quarter than it did from July to September.
Sony and interesting details
Importantly, the company’s gaming business overall performed much better than a year ago. It is worth noting that, revenue rose 40% to 883.2 billion yen ($8.4 billion), partially thanks to PlayStation 5 sales. Moreover, operating profit was up by 50% to 80.2 billion yen ($763.3 million) because of higher game sales, PlayStation Plus subscriptions as well as better margins on PS4 hardware.
However, there are certain challenges as well. Based on the information provided by Sony, expenses related to the PS5 launch offset some of its profit gains. Moreover, it confirms that the PS5 hardware itself is being sold for less than it costs to make. Importantly, a loss was incurred due to strategic price points for PS5 hardware that were set lower than the manufacturing costs.
People should take into account that, Sony also shipped 4.5 million PS4 units in its launch quarter.
As stated above, people are willing to buy consoles produced by Sony. Last year, millions of people all over the world started to spend more time at home due to restrictions. It is not surprising that many of them decided to buy new laptops, etc. Moreover, some of them bought PlayStation 5 consoles. For more than a quarter of a century Sony continues to produce consoles. As can be seen from the information stated above, gamers are willing to buy PS5 and this fact once more underlines the popularity of this console. Sony has the capability to make high-quality products. It is not surprising that customers are ready to pay several hundred dollars to buy PlayStation 5.
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