Sony is facing significant challenges in the gaming sector, with the latest reports revealing a sharp 46% drop in PlayStation 5 sales compared to last year, driven by a global memory supply crisis.
Sony sold only 1.5 million PS5 units during the fourth fiscal quarter, a decline analysts described as a “fall off the cliff edge.” The company anticipates a further 6% revenue decline (equivalent to $1.69 billion) next year, after having to raise the console’s price twice in less than a year, bringing it to $650, a $150 increase from a year ago.
Despite the hardware sales slump, annual gaming revenue has remained relatively stable thanks to sales from the PlayStation Network. However, profits were impacted by losses related to Bungie due to the poor performance of Destiny 2. Sony is betting on a 30% profit surge next year, bolstered by the highly anticipated release of Grand Theft Auto VI this November. In a first-of-its-kind move, Sony implicitly acknowledged that work has begun on its next-generation console, the PlayStation 6, indicating that increased investment in developing the “next-generation platform” will stabilize operating profits rather than grow them. This statement confirms that the development costs of the upcoming console are already beginning to strain the company’s budget.
Sony explained that its sales plans for 2026 will depend entirely on the amount of memory it can acquire at reasonable prices. This difficult situation comes as the PS5 nears the end of its lifecycle (six years after its launch), putting it in an awkward position compared to its competitor, Nintendo, which has regained its former glory with the Switch 2, launched in June 2025, and which broke records as the fastest-selling console in the company’s history.
