Sony’s Game Division Sees Strong Growth In 2016
While many of Sony’s departments, including mobile, movies, television, and music, posted loses in 2016, the company’s video game division showed strong growth throughout the year. The company sold 20 million PlayStation 4 consoles which is 2 million more than they sold in the fiscal year of 2015. In total, the game division brought in $14.73 billion in profits which was a 6.3 percent increase over the previous year.
For the most part, Sony says the increased profits are coming from the “hardware cost reductions” as a result of the introduction of the PlayStation Slim. However, we can’t ignore the fact that more users means more PlayStation Network sales. The sales from 2016 brings the total number of PS4 sales up to 60 million. Those additional 20 million customers are all buying PS4 games and the PlayStation Network store accounts for a large part of those sales which leads to increased revenue for Sony.
While the above numbers are certainly good news for Sony, sales of the PS4 may have peaked in 2016. The company is only planning on shipping 18 million units for the 2017 fiscal year. The company would, of course, like to see a continued increase in sales, that doesn’t mean the PS4 is dying or anything of that nature. In fact, it is currently outselling the very popular PS2 during this point in that console’s life cycle. Overall, Sony expects their games division to grow by 14.6 percent.
All in all, Sony is expecting its various divisions, except for music, to rebound in 2017. During a meeting, the company told its shareholders that it expects to see revenue increase by 5.2 percent over the course of this year. That being said, those are merely projections so it remains to be seen just how accurate they are.
Eric is an avid tech junkie, gamer, and comic fan. When he's not working on his PC, you'll find him at your local comic book shop.