While the PS5 got off to a running start, Sony also confirmed that it’s losing money on every PS5 sold because it set “strategic price points for PS5 hardware that were… lower than the manufacturing costs.” The cost of the launch itself also cut into potential profits, as would be expected with an all-new console.
Sony Electronics also fared well in the company’s latest quarter (Q3 fiscal), with revenue down slightly but operating income up 25.4 percent to 105.8 million yen ($1 billion). Sony chalked that up to an increase in television revenue, a better product mix and a reduction in operating costs in its mobile division. However, mobile and camera sales were down over 2019, continuing a trend with Sony and the industry in general (except for Apple).
Overall, Sony fared pretty well this quarter, showing profitability across all its segments with sales and operating income up 9.5 and 20 percent, respectively — with gaming, once again, leading the charge. Now, Sony just has to ramp up manufacturing so that everyone who wants a PS5 console can get one.