From Sony’s Q3 2023 report, Hiroki Totoki, President of Sony, COO, CFO, and Interim Chairman of SIE, emphasized the continued focus on producing high-quality games and developing live service games. However, there will be no major releases from existing franchises until the end of the next fiscal year (from April 1, 2024, to March 31, 2025).
Even though there will be no new games from familiar franchises, there might be some new games released during this period, including the possibility of sequels to smaller games.
Totoki mentioned that while the cost burden associated with acquisitions will decrease in the upcoming fiscal year, he expects a slight decrease in profits from first-party games due to the impact of declining sales. Therefore, he anticipates a slight increase in revenue from operations in the next fiscal year. Totoki is currently considering other strategies to enhance profitability before announcing the annual forecast in May.
Regarding the PS5, Totoki stated that it is entering its fifth year and is in the late stages of its life cycle. Therefore, the goal is to balance sales and increase profits. Consequently, he predicts a gradual decline in console sales starting from the next fiscal year.
However, Totoki also believes that third-party game sales will continue to expand due to the growing user base of the PS5 and high player engagement. In terms of services, he expects a marginal decrease or stabilization in the number of PlayStation Plus subscribers due to the price increase. Nevertheless, he hopes that sales will increase gradually as more users opt for the Premium subscription.
Additionally, Totoki emphasizes the need for studio games under SIE’s care to develop their business further. He describes studio employees as highly motivated, good-hearted individuals with a creative mindset and excellent knowledge of live streaming. However, when it comes to the business aspect, he believes that the studios still have room for improvement, particularly in terms of spending practices, development schedules, and accountability. He plans to discuss these aspects with the team in order to find suitable ways to enhance the organization in the future.
TLDR: According to Sony’s Q3 2023 report, Hiroki Totoki announced that while there will be no major game releases from existing franchises until the end of the next fiscal year, there may be new game releases and sequels to smaller games during this period. He expects a slight decrease in profits from first-party games, but an increase in overall revenue. Totoki aims to balance sales and increase profits for the PS5, anticipating a gradual decline in console sales. Third-party game sales are expected to expand, while PlayStation Plus subscriber numbers may decrease slightly. Totoki also emphasizes the need for studios to improve their business practices and plans to address this with the team in the future.
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