After releasing its earnings statement early this morning, Sony hosted a financial call for Japanese investors and analysts related to the first quarter of fiscal year 2015. During the call, Chief Financial Officer Kenichiro Yoshida provided more color about performance and expectations for the PlayStation business.
At the end of the Q&A session, Yoshida-san mentioned that sales of PS4 are “progressing very smoothly” and installed base is increasing. That’s why network profitability is progressing very well. Hit software titles also observed a “very smooth progress.”
The PS3 also was a factor, as the profitability for software on Sony’s old console did not really drop as much as expected in the first quarter.
Sony has “very high expectations” for PlayStation Network services. The user response has been really high since the launch of PS4. They also stay for a long time in terms of usage of the services. The use of PlayStation Plus services is also “increasing very smoothly,” so the subscription business, especially in terms of ARRPU (Average Revenue Per Paying User) is seeing an upside.
According to Yoshida-san, network sales have increased significantly year on year, even if the impact of FOREX is very severe.
The call concluded with the mention that this year is going to be a year of investment for Sony, including the need to execute the launch of PlayStation Vue successfully. PlayStation CEO Andrew House and Sony CEO Kaz Hirai have a consistent view on this topic, so investment in this line of business will continue.