PlayStation raises full-year forecast after revenue growth in network services and first-party software
Sony raised its full-year forecast for its games division after higher revenue in network services and first-party software, offsetting lower PlayStation 5 hardware sales.
Sony increased its full-year forecast for its games and network services segment following stronger second-quarter results driven by higher sales in network services and first-party software. The company highlighted Marvel's Wolverine, which sold 2.4 million units since its September 15 launch, as a key contributor to the segment's improved performance. Hardware revenue declined due to a drop in PlayStation 5 unit sales, which fell from four million in the same quarter last year to 2.6 million this quarter, bringing lifetime console sales to 93.7 million.
Game software revenue rose 12.5% to ¥708.5 billion ($4.4 billion), with digital software and add-on content accounting for ¥643.9 billion ($4 billion). Physical software revenue increased 21.7% to ¥43.1 billion ($272 million), while network services revenue grew 19.7% to ¥218.3 billion ($1.37 billion). Monthly active PlayStation Network users reached a record 127 million for September, up from 119 million a year earlier.
Sony's games and network services operating income rose due to the absence of a ¥49.8 billion one-time loss recorded in the prior year, which included a $765 million impairment loss from Bungie. Excluding this, operating income increased 29% year-over-year. The company attributed the gains to higher sales of network services and first-party software, including Marvel's Wolverine and other titles.
Sony raised its full-year forecast for the games and network services segment by 6% to ¥4.8 trillion ($30.3 billion) in sales and by 6% to ¥700 billion ($4.4 billion) in operating income. Sony CFO Lin Tao cited stronger third-party software and network services sales, along with cost reductions, as key drivers for the upward revision.