PlayStation 5 didn't sell as well as expected.

According to Engadget , despite achieving record quarterly sales and selling 8.2 million PlayStation 5 (PS5) units during the holiday season, Sony has significantly lowered its sales expectations for the PlayStation 5 in fiscal year 2023. Specifically, the company now projects sales of 21 million units instead of the previously projected 25 million.

This is a surprising move by the gaming company, as it comes after Sony recorded record quarterly sales during the holiday season. In this fiscal year, Sony sold 16.4 million units, bringing its lifetime sales total to 54.8 million worldwide (the company sold 19.1 million PS5 units in fiscal year 2022).

Sony predicts PlayStation 5 sales will be lower than expected.

Last December, Sony announced it had sold 50 million PS5 consoles in the past three years, as of December 9th. This period was more than a week longer than the PS4 to reach the same number, but the PS4 did not face supply chain constraints or the global pandemic.

Revenue increased 16% year-over-quarter, partly due to strong third-party game sales. However, operating profit declined significantly (26%) due to declining sales of exclusive games and hardware losses from promotions. In other words, PS5 sales fell short of the company's expectations despite price reductions.

Sony has seen higher sales in all three quarters compared to last year. However, this may not continue this year, as the company forecasts sales of only 4.6 million units in the fourth quarter of fiscal year 2023 (February to April), down from 6.3 million units in the fourth fiscal quarter of 2022.

Regarding new exclusive games, Sony stated that Marvel's Spider-Man 2 has sold 10 million copies (as of February 4th) since its release in October 2023.

Ultimately, most of Sony's other business segments saw significant revenue growth, including Imaging & Sensor Solutions (Sony manufactures sensors for iPhones and other devices), along with Pictures and Music. This resulted in a record 3.75 trillion yen for the third quarter ($24.9 billion) compared to 3.08 trillion yen the previous year ($20.5 billion).

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