PlayStation raises full-year forecast after revenue growth in network services and first-party software

Sony has increased its full-year forecast for the games segment due to higher revenue and operating income in the second quarter. The boost was attributed to increased sales from network services and first-party software, including Marvel's Wolverine, which sold over 2.4 million units since its launch on September 15th. Hardware revenue decreased due to lower PlayStation 5 sales, but the console still sold an additional 2.6 million units, bringing its lifetime total to 93.7 million.

Sony's G&NS segment operating income rose by 29% during the quarter, excluding a one-time loss of ¥49.8 billion from the previous year. Overall, Sony's gains were primarily due to higher sales of network services and first-party software. Game software revenue grew by 12.5% to ¥708.5 billion, with digital software and add-on content contributing ¥643.9 billion.

Physical software revenue increased by 21.7% to ¥43.1 billion. Insomniac Games' Marvel's Wolverine significantly contributed to the segment's improved performance. Network services revenue rose by 19.7% to ¥218.3 billion, with monthly active PS Plus users reaching a record high of 127 million. PlayStation 5 hardware revenue dropped by 4.8% due to a decline in unit sales.

Sony CFO Lin Tao noted that the company successfully offset rising memory prices for PS5 hardware through adjustments and cost reductions. Sony increased its G&NS segment sales forecast for the fiscal year by 6% to ¥4.8 trillion and operating income by 6% to ¥700 billion, attributing the increase to higher third-party software and network services sales and decreased costs.

The company aims to enhance user engagement and strengthen monetization through strong titles and expanded services in the next fiscal year, as they prepare for the next-generation platform.