Sony: PS4 Pro and PlayStation VR “Continue to Sell Well;” PS4 Is in the “Harvest Phase”

Sony: PS4 Pro and PlayStation VR “Continue to Sell Well;” PS4 Is in the “Harvest Phase”

Sony explains that PS4 Pro and PlayStation VR are doing well, while the PS4 platform as a whole is harvesting profits.

During Sony’s quarterly financial conference call for investors and analysts, Chief Financial Officer Kenichiro Yoshida talked about the performance of PS4 Pro and PlayStation VR, which weren’t mentioned in the results announcement released earlier today.

“PS VR and PS4 Pro, which went on sale last fall, both continue to sell well, which demonstrates the achievements we made when launching new products in fiscal 16.”

Yoshida-san also mentioned that, while the PS4 shipments forecast for fiscal year 2017 (which will end on March 31st, 2018) is lower than the one for fiscal year 2016, Sony believes that the platform is in the “harvest phase.”

“Three and a half years have passed since the launch of PS4, and we expect annual unit sales in fiscal 17 to decrease year-on-year to 18 million units, but some major software titles are scheduled to be launched, and we believe we are in the harvest phase of the platform.”

Later in the call, Yoshida-san elaborated further, mentioning that the platform is close to its peak according to traditional console cycles, but the company intends to promote the software and network businesses to expand profitability.

“This is the fourth year since launch for PS4, and the peak for the past platforms came three or four years after the launch, and PS4 should not be an exception in our view, but if sold units reach 18 million this year, the cumulative number would be 78 million, so we need to capitalize and leverage on this base for software sales. We need to promote the software business and network business so that we can expand the profits.

For hardware, according to the normal cycle, the peak will be this or the next year. For profit and software, the peak will come according to the conventional cycle, and we don’t feel that there will be a major diversion from this trend. For software, this is the season for harvest, and we would like to promote a steady business going forward.

With the growth of network services, this is different from past business practices, and console cycles in the past. We cannot eliminate volatility, but after the peak, volatility of performance should be minimized to stabilize the profit foundation.”

Today Sony announced its financial results for fiscal year 2016, ended on March 31st, 2017, including overall PS4 shipments.