Sony Reports Healthy Profits as Anticipated PlayStation 5 Pro Launches

With the so-called console wars continuing as 2024 draws to a close, it appears that — despite several setbacks — Sony is outperforming expectations after a less-than-stellar showing last year. This news comes as Sony and Microsoft see software sales surging year-over-year, while industry stalwart Nintendo saw sluggish movement of its games from shelves during the same period.

With Sony’s much-anticipated PlayStation 5 Pro shipping now, what can be expected for the gaming sector as earnings numbers emerge?

Sony Enjoys Encouraging Profits Across Several Business Sectors

As AP News reported, Sony’s profits rose 69% during the July-September quarter compared to 2023’s results.

Attributing the increase in profits to “strong sales of its image sensors, games, music and network services,” AP’s Yuri Kageyama also indicated that game sales were up even while hardware shipments of the base PlayStation 5 model have begun to stall. Throughout the previous quarter, Sony managed to move 3.8 million units of its popular game console as compared to 4.9 million units sold the previous year.

Sony’s relative strength in the marketplace comes despite a few headwinds, including the ever-increasing cost of game development, per Reuters. Sony made headlines earlier this year after shuttering first-person hero shooter “Concord,” a game which reportedly cost at least $200 million to develop and market, as Rock Paper Shotgun outlined. The game lasted a mere three weeks online before being pulled by Sony, and the studio responsible for the title’s development, Firework Studios, was also shut down.

Despite this, Sony’s future looks quite bright where its software sales are concerned.

“Sony generates more than a third of its revenues from the game and network service segment, where profit nearly tripled [this quarter],” Reuters indicated. Sony also revised its profit expectations upward for the rest of the year based on recent performance.

Microsoft’s Game Software Profits Also Soar While Nintendo Sales Slow

Microsoft also enjoyed a surge in terms of gaming software sales, with The Verge reporting that the company saw a 61% increase in Xbox content and services revenue year-over-year from the previous quarter — a surge largely attributed to the company’s acquisition of Activision, famous for its “Call of Duty” property.

In the meantime, fellow competitor Nintendo did not fare as well in terms of recent software sales figures. Regarding the April-September sales period this year, as ABC News reported, Nintendo moved more than 70 million units of game software, as opposed to over 97 million in 2023.

Sony’s PlayStation 5 Pro Finally Ships

Amid all these sales numbers, gamers across the globe await the impact the Playstation 5 Pro will bring to the market. Early reviews have been mixed, with CNET calling the console “the most powerful gaming console on the market,” while Rolling Stone categorized the new hardware as “an overpriced, superficial upgrade.”

With the gaming community as passionate about their preferred brand as many sports fans, it remains to be seen exactly how well the PS5 Pro will perform in terms of sales figures. Sony president Hiroki Totoki adopted a positive outlook about the continued transition of the company’s install base toward newer hardware, however.

“We continue seeing a smooth shift (among consumers) to PS5 from PS4, which is leading to higher software sales also,” Totoki stated during a recent earnings briefing, according to Reuters.