The Games and Network Services division of Sony Group (NYSE: SONY) reported a 61% year-to-year revenue increase for the fourth quarter ending 3/31/23. Game hardware revenue was up 180% as Sony sold 6.3 million PlayStation 5 systems. Network services revenue was up 14%, while software was up 11%.
This was the news everyone was waiting for. After Microsoft reported dismal Xbox results earlier this week there was some concern about general softness in the video game console market. Sony had aggressive hardware sales forecast for the first three months of 2023. Those forecasts were met.
At 6.3 million units, the PlayStation 5 had the best Q1 of any console system ever (the previous best was the Switch in the first quarter of 2020). Of course, having an installed base of PlayStation 5 systems means third-party companies can finally have a significant audience for software and accessories.
Now that the PlayStation 5 reached DFC Intelligence forecasts for 2022 the question is whether we need to raise those forecasts for the rest of 2023 and beyond. Right now, the forecast is that in both 2023 and 2024, hardware unit sales will set a record for any PlayStation system ever. However, sales could be even better than that. They could smash the record! Stay tuned.