Sony Q2 FY3/2025 Financial Results (Jul-Sep 2024) | G&NS sales up by 12% YoY, OI up by 184%; PS5 HW at 3,8m (-22%), SW at 77,7m (+15%)

Sony Group Portal - FY2023 Q2 Earnings Announcement

www.sony.com

Q2 sales

Hardware - 3,8M (-22% YoY)
Software - 77,7M (+15% YoY)

Q1 sales

Hardware - 2,4M (-27% YoY)
Software - 53,6M (-5% YoY)

Forecasts for the G&NS segment (in Bn Yen):

Sales: 4.490(+170)
Operating Income: 355 (+35)

Changes are with the August forecast

 

[Lelouch0612]

Call starts in 15 minutes

Sony Group Corporation　［LIVE］FY2024 Q2 Earnings Announcement

live.irwebmeeting.com

 

[The Hunter]

Very good quarter, I did not expect such a high increase in profits

 

[Ronin]

Sony has become an absolute juggernaut.

 

[chroeser]

I did not expect such a good quarter. Maybe Wukong had quite the impact in china?

 

[TJTree]

Wow, I did not expect ps5 hardware to hold up this well!

 

[salesguy]

so i have the gen over gen ps4 quarter, apr-jun 2017, at 3.3 is that right?

if so they picked up 500k on ps4

i wont comment on all those profits and all the devs they laid off

 

[Lelouch0612]

Sony stock jumps +5% in aftermarket trading on Friday afternoon Japan time.

They just started a video briefing online to discuss earnings further

 

[mbolibombo]

Software doing the heavy lifting this quarter
EA Sports College, Wukong most certainly helped drive that.

How come Hardware dropped so much though? Was there something last year that drove hardware? Or just the hiked prices across the world (majority of it at least)

 

[kazuyamishima]

How come Hardware dropped so much though? Was there something last year that drove hardware?

Still pendant demand and the Niche-Man 2 Limited Edition PS5 that was launched on September 2023.

 

[Butzke]

I would be shocked if they didnt do a permanent 100$ price cut next year, ahead of Switch 2 launch

 

[Astandahl]

I would be shocked if they didnt do a permanent 100$ price cut next year, ahead of Switch 2 launch

Switch 2 will have close to 0 impact on PS5 sales performance, at least in EU and US. In Japan PS5 is already selling badly so it would be hard to do even worse.

Anyway, the result is ok considering the current market landscape. The very high price and EU economy struggling massively are huge limitations.

 

[cybbsam]

Switch 2 will have close to 0 impact on PS5 sales performance, at least in EU and US. In Japan PS5 is already selling badly so it would be hard to do even worse.

Anyway, the result is ok considering the current market landscape. The very high price and EU economy struggling massively are huge limitations.

I don't believe this. There is no way the release of a major console will not affect another. They share the same market

 

[Butzke]

Switch 2 will have close to 0 impact on PS5 sales performance, at least in 7EU and US. In Japan PS5 is already selling badly so it would be hard to do even worse.

Anyway, the result is ok considering the current market landscape. The very high price and EU economy struggling massively are huge limitations.

I disagree, Nintendo is the only real competition in the console space. Switch 2 will have better 3rd party support and "similar" looking fidelity (at 30 fps).
Sony would be wise to match/undercut the Switch 2 with 350$ DE/400$ Disc

 

[derby_440]

$900m OI, 13% margin. Improvement in hardware profitability. Likely wrote off $200m Concord loss.

Great result overall.

 

[Gimmick]

Wow, that's a massive increase from last year, I knew they were doing well but this is some seriously impressive results.

I think that operating income is about twice that of Nintendo?

 

[AruanaRiva]

The power of Wu Kong for sure. Thats such strong quarter as China growth help mitigated some region decline like japan.

 

[Copilot]

Playstation:

Hardware - ~U$1.43B
Content & Services - ~U$5.59B
Total - ~U$7.02B

Xbox:

Hardware - ~U$0.52B
Content & Services - ~U$5.10B
Total - ~U$5.62B

Nintendo:

Total - ~U$1.80B

 

[Joseki]

From @pierre485.

FY2025
Forecast - 18m
Q1+Q2 - 6.8m
Q3+Q4 - 11.8m

PS5 has been down 0.9m in Q1 and 0.4m in Q2 from the equivalent PS4 quarters. (-1.3m).
PS4 Q17 was 9m.

I actually don't think PS5 will reach the forecast unless PS5 Pro does much better than I expect it to do. North America will have to carry it hard.

 

[Ronin]

From @pierre485.

FY2025
Forecast - 18m
Q1+Q2 - 6.8m
Q3+Q4 - 11.8m

PS5 has been down 0.9m in Q1 and 0.4m in Q2 from the equivalent PS4 quarters. (-1.3m).
PS4 Q17 was 9m.

I actually don't think PS5 will reach the forecast unless PS5 Pro does much better than I expect it to do. North America will have to carry it hard.

Q3 will be massive, promotions will be really big.

 

[Adri]

Is it me or PS5 hardware sales are always a bit better than expected? Do you think this figures include early PS5 Pro shipments ?

 

[Joseki]

Q3 will be massive, promotions will be really big.

Have they already announced their holiday promotions?

 

[Tbone5189]

Is it me or PS5 hardware sales are always a bit better than expected? Do you think this figures include early PS5 Pro shipments ?

All pro shipments will be in Q3

 

[Bernd Lauert]

Playstation:

Hardware - ~U$1.43B
Content & Services - ~U$5.59B
Total - ~U$7.02B

Xbox:

Hardware - ~U$0.52B
Content & Services - ~U$5.10B
Total - ~U$5.62B

Nintendo:

Total - ~U$1.80B

Playstation content & services are at $5.41B, hardware is at $1.52B, total is at $7.50B

Nintendo content & services are at $1.07B, or $1.54B if we assume PS and Xbox accounting method. Nintendo total is $1.94B or $2.41B by the aforementioned accounting method.

 

[Copilot]

Playstation content & services are at $5.41B, hardware is at $1.52B, total is at $7.50B

Nintendo content & services are at $1.07B, or $1.54B if we assume PS and Xbox accounting method. Nintendo total is $1.94B or $2.41B by the aforementioned accounting method.

What exchange are you using?

 

[Bernd Lauert]

What exchange are you using?

142.7 yen per dollar.

 

[Remember_spinal]

I actually don't think PS5 will reach the forecast unless PS5 Pro does much better than I expect it to do. North America will have to carry it hard.

They revised their forecast up. They’re expecting a big holiday quarter with the pro models and major sales of the base and slim units.

Some leaks were $350-400 for BF

 

[JavelinR]

They revised their forecast up. They’re expecting a big holiday quarter with the pro models and major sales of the base and slim units.

Some leaks were $350-400 for BF

Where are you seeing a hardware forecast increase?

 

[Remember_spinal]

Where are you seeing a hardware forecast increase?

Sorry, Revenue Increase*

But my point still stands, they’d have to sell what 8- 9 million over the next two quarters?

I think something major would have to happen for them to miss their hardware target.

 

[derby_440]

Sorry, Revenue Increase*

But my point still stands, they’d have to sell what 8- 9 million over the next two quarters?

I think something major would have to happen for them to miss their hardware target.

They sold 6.2m in 2 Q. Need to sell 12m in next 2 quarter.

 

[GamingCJ]

They sold 6.2m in 2 Q. Need to sell 12m in next 2 quarter.

So 8.5m in Q3 and 3.3m in Q4 would be enough. That doesn't sound unreasonable considering Q4 will be packed 3rd party wise (MHW, AC Shadows, etc)

 

[Ronin]

Have they already announced their holiday promotions?

No but it'll be very big.

Expect 9M shipment.

 

[opaidiota]

With this, the PlayStation 5 passed the NES/Famicom. 3DS is next.

I imagine that in the end it will be a little above PS1 and Wii.

 

[derby_440]

142.7 yen per dollar.

Sony is using 149.5 yen per dollar.

$7.16b total revenue

$928m OI, 13% margin

$5.7b content and services
$1.45b hardware

 

[opaidiota]

Oh, and considering that the PlayStation 5 Pro is smaller and considerably lighter than the OG model (the Pro is 4nm, right?), I think that at some point we will have the Super Slim model, and then finally a price affordable enough to keep the momentum going towards the end of the console's life.

 

[Belthazar]

Didn't expect their margins to improve by THAT much.

 

[aktoner]

Did they make a €500M profit the last quarter? How does that compare historically to previous Q2's?

 

[Tbone5189]

So 8.5m in Q3 and 3.3m in Q4 would be enough. That doesn't sound unreasonable considering Q4 will be packed 3rd party wise (MHW, AC Shadows, etc)

What was last year Q3? Q4 should be up

 

[fiendcode]

What was last year Q3? Q4 should be up

Last FY Q3 was 8.2m and Q4 4.5m (with some channel stuffing to try and reach targets, following FYQ1 was only 2.4m which is how much they were doing during supply constraints).

We'll have to see how Pro and the holiday deals shake out but an 8.5m Q3 would be a record for PS5 and only 500k behind PS4's aligned Q3.

 

[Yomi]

So 8.5m in Q3

That's too much I think. Maybe 6 million even with PS5 Pro.

 

[GamingCJ]

That's too much I think. Maybe 6 million even with PS5 Pro.

You should look up what PS4 and PS5 typically sell mid-gen. 8m+ is a reasonable expectation.

 

[Lelouch0612]

I am not confident as some of you about Q3 shipments.

At this point in time, Sony reached 9m in 2017 but that was with a 199$ blockbuster PS4 deal in the US. In 2018, it didn't reach 8.5m despite the 199$ Spider-Man bundle and Red Dead.

This year has the Pro but software and pricing are issues.

 

[fiendcode]

You should look up what PS4 and PS5 typically sell mid-gen. 8m+ is a reasonable expectation.

Q3s

PS4
2013: 4.5m (launch)
2014: 6.4m
2015: 8.4m
2016: 9.7m
2017: 9.0m
2018: 8.1m
2019: 6.0m
2020: 1.4m
2021: 0.2m

PS5
2020: 4.5m (launch)
2021: 3.9m
2022: 7.1m
2023: 8.2m

 

[Ronin]

Q3s

PS4
2013: 4.5m (launch)
2014: 6.4m
2015: 8.4m
2016: 9.7m
2017: 9.0m
2018: 8.1m
2019: 6.0m
2020: 1.4m
2021: 0.2m

PS5
2020: 4.5m (launch)
2021: 3.9m
2022: 7.1m
2023: 8.2m

9M MINIMUM this quarter.

But we'll see, massive promotions might seal the deal.

 

[AstroB]

FY23/Q2 Sales: 954.096
FY23/Q2 Operating Income: 48.902
FY24/Q2 Sales: 1.071.530 (12,31% +)
FY24/Q2 Operating Income: 138.849 (183,93% +)

FY24/Q2 was their most profitable quarter ever. They've never made so much Operating Income before. But why, what happened? Are studio closures and mass layoffs so effective?

 

[Yomi]

9M MINIMUM this quarter.

Why? Every quarter was lower then last year's quarter.

 

[Broseph]

Pretty damn good quarter. Basically 2 million under the PS4 launch aligned and that was selling for 200 bucks at this point. They just need to stall till the biggest game of the 2020s comes out next year

 

[fiendcode]

Why? Every quarter was lower then last year's quarter.

It really depends on how the Pro goes over. Right now though I'd say something closer to 7m than either 9m or 6m is probably where we're headed

 

[Luminoth 4545]

Hardware sales are down 1.1million year over year for the quarter but last years Q2 was Extremely strong.

PS5 Versus PS4

For the 2nd quarter of the 4th full fiscal year (orange) the 3.8 million the PS5 shipped is 0.4 million down on PS4's 4.2 million and after 16 quarters the PS5 totals 65.5 million compared to 67.7 million for the PS4. This means launch aligned the PS5 is 2.2 million behind PS4.

 

[awng782]

Incredible software numbers, the record-breaking success of College Football in America and WuKong in China were major factors.

Hardware is good, though sales need to remain nearly flat YoY to reach their desired FY3/2025 HW forecast. We'll see how well the PS5 Pro sells.