The latest earnings report by Sony, which was published quite recently by the company, featured some interesting information about its PlayStation 5 console. The report stated that Sony sold as many as 4.5 million units of the PlayStation 5 console in 2020. The figures point towards the fact the company was able to manufacture the console on a large scale.
The PlayStation 5 console arrived in the market in November. It was said that consumers were finding it very difficult to procure it from online and offline stores. Owing to the high demand for the console, it was disappearing pretty quickly from the market and Sony was grappling with the struggle to send fresh stock every now and then.
The fact that the console saw so much success coming its way shows that the company managed to overcome the challenge of meeting high demands in due course of time. Trade experts have acknowledged the high sales of the console and remarked that the number could have been higher if there was never a problem with regards to the availability of the product.
The report also brings to the fore the fact that there has been a drop in the demand for the PlayStation 4 every year. In the October-December quarter, around 1.4 million units of the PlayStation 4 were shipped to different markets. When one compares to the sales in 2019, there has been a 77 percent decrease in the sales of the product. Interestingly, Sony sold fewer units of PS4s in the holiday quarter than the quarter between July and September.
The gaming business of the company showed much better results in the recent past than it did a year ago. Leading analyst Daniel Ahmad stated that the fourth quarter of 2020 emerged as the most successful quarter in the history of PlayStation. The gaming division of Sony registered an increase in revenue by 40 percent. The revenue reached its peak at 80.2 billion yen ($763.3 million). The company has scored high on multiple areas like PlayStation Plus subscriptions, game sales, and improved margins on PS4 hardware.
Sony has also admitted that they spent big on the launch of the PS5 and that proved to be a minor dent in the total profits the company generated. The company also stated that the price of the PS5 hardware is lower than its production cost.