Sony Q1 FY2022 Results (2.4m PS5,

[ethomaz]

Sony Group Portal - FY2023 Q2 Earnings Announcement

www.sony.com

Revenue down 2%
* Hardware up 12%
* Software down 13%
* Services up 4%
Profit down 37%

Seems software is affected by lower non-first party game sales and DLC content… their forecast even include that for the whole FY.

Profit is being affected by recents acquisitions expenses and game development of 1st party studios costs.

Digital/Physical ratio reaches a new record 79%.

Current State of Business - Game & Network Services Segment (G&NS Segment)

• Total gameplay time for PlayStation users declined 15% year-on-year in Q1. Gameplay time in the month of June improved 3% compared with May and was down only 10% versus June 2021, but this is a much lower level of engagement than we anticipated in our previous forecast.
• We believe the primary reason for this is that the growth of the overall game market has recently decelerated as opportunities have increased for users to go outside due to a reduction in COVID-19 infections in key markets.
• Taking this situation into account, we intend to take action to increase user engagement in the second half of the fiscal year, during which major titles including first party software are scheduled to be released, primarily by increasing the supply of PlayStation®5 (“PS5™”) hardware and promoting the new PlayStation Plus service.
• At this point in time, we have made no change to our 18 million unit sales forecast for PS5™ hardware in FY22, but since we are seeing a recovery from the impact of the lockdown in Shanghai and a significant improvement in the supply of components, we are working to bring-forward more supply into the year-end holiday selling season.
• Sony Interactive Entertainment LLC completed its acquisition of Bungie on July 15 of this year and collaboration between the two companies has begun.
• In addition, the acquisition of Haven Entertainment Studios, announced in March, was completed on June 27. In addition to enhancing the content development capability of our existing studios, we are working to strengthen our first-party software by creating new IP and accelerating the roll-out of live game services and multi-platform titles through synergies with the studios we have acquired.

 

[The Legendary Warrior]

Profit Drops 37% Year-on-Year​

 

[Remember_Spinal]

Great time to have a showcase and get people hype again for gaming.

There are still ps5’s available on the ps store. This is the longest they’ve ever been available. And 1st party software sales is pretty terrible, that means horizon and gt7 didnt even do 7 mil combined in sales. -edit- i forget this is April-June

This kind of proves that sony can’t really “just sit back” for the year because they are still selling consoles like people are saying. They gotta show us the future of ps5 already

 

[Sleepy Brown]

Sony Earnings FY2022 Q1 - Sony Cuts Profit Outlook on Lower PlayStation Prospects



- Sony Cuts Profit Outlook on Lower PlayStation Prospects
- Third-party game sales estimates have been revised down
- Weaker yen helped the company’s revenue over last quarter

PS+ numbers dropped compared to last quarter.
Only 2.4 million PS5 shipped.
Only 6.4 million 1st party sales.
The PlayStation division declined ~38% year over year.

Pretty underwhelming all around.

Sony Group Corp. cut its profit outlook for the fiscal year, with its PlayStation division expected to contribute less than previously forecast.

The Tokyo-based entertainment conglomerate said on Friday that it now expects 1.11 trillion yen ($8.3 billion) in operating profit, down from 1.16 trillion yen previously. The gaming and network services group, which houses the PlayStation business, accounted for the full revision, going down from 305 billion yen to 255 billion yen. Sony cited costs related to its acquisition of Bungie Inc. and lower expectations for third-party software sales on the platform as reason for the change.

The company’s April-June operating profit beat estimates, coming in at 307 billion yen, higher than the average analyst estimate of 286.7 billion. Investors will be looking for signs that Sony can weather the current macroeconomic challenges by relying on the rest of its portfolio beyond the keystone PlayStation business.

The outlook downgrade comes after Sony’s hardware production was limited by chronic supply chain bottlenecks exacerbated by extended Covid-19 lockdowns in China. The company sold 2.4 million PlayStation 5 units in the period, slightly better than the 2.3 million from a year ago.

Supply chain snarls will likely continue to trouble electronics makers this year as the re-emergence of Covid infections and Russia’s invasion of Ukraine affect shipping, production capacity and the cost of materials. South Korean giant Samsung Electronics Co. said a day earlier that it’s adjusting its forecast on an almost daily basis because of the high degree of geopolitical volatility and economic uncertainty. Component makers, logistics specialists and manufacturing machinery providers have expressed skepticism that the supply chain can return to normal operation this year.

 

[BigMclargeHuge]

Great time to have a showcase and get people hype again for gaming.

There are still ps5’s available on the ps store. This is the longest they’ve ever been available. And 1st party software sales is pretty terrible, that means horizon and gt7 didnt even do 7 mil combined in sales.

This kind of proves that sony can’t really “just sit back” for the year because they are still selling consoles like people are saying. They gotta show us the future of ps5 already

Holy shit, you were right. The regular was sold out, but I snagged a horizon bundle. I already own the game, but fuck it. Stupid fucking email invite thing was never going to work.

 

[ethomaz]

Forecast for the FY is around $27b that if turns true is basically one if not the best any company had ever in videogame history.

 

[Lord Mittens]

at the end of the day regardless of drops, money is money.

 

[Remember_Spinal]

Revenue is only down 2% which means they are reinvesting (its stated in the reports) into software and hardware. Probably the release of PSVR2, upcoming big games, and expanding all the studios.

Overall its not too bad, considering sony just started supplying huge quantities of PS5’s this past month. Next quarter is probably gonna be a lot higher

 

[Dr Bass]

Profit Drops 37% Year-on-Year​

But they have profits to drop.

Most companies seeing drops in revenue overall in general right now.

Did they have any big releases in q2? I thought it was all q1. And I think last year they had ratchet in q2. Not a great result of course but they have been heavily supply constrained and they are still turning a profit so …

 

[Dr Bass]

Revenue is only down 2% which means they are reinvesting (its stated in the reports) into software and hardware. Probably the release of PSVR2, upcoming big games, and expanding all the studios.

Overall its not too bad, considering sony just started supplying huge quantities of PS5’s this past month. Next quarter is probably gonna be a lot higher

Revenue is before any of that. Reinvesting would affect net income. But being down 2% is “ok” I guess given their issues. Could still be doing better. They need more games beyond god of war.

Wonder what Nintendo will look like.

 

[Yurinka]

Software is normal to be down YoY because last year there were more big game releases. Hardware is better than last year but normal to not to be higher due to chip shortages.

Regarding PS+ they increased a bit the revenue, but I expected them to grow the subs (even if in their biggest market, Europe, was released in late June so almost not included here, I asume will be more noticiable the next quarter). It's also weird for me to see a bit lower MAU, I assume it's due to the low amount of big releases this quarter.

Their estimation of 27.2B in gaming revenue for this FY would be the biggest one any console maker ever had in gaming history. The CFO said forecast of 18M PS5 sold during FY22 remains unchanged, which would mean 37.3M PS5 sold by the end of this fiscal yar.

Profit Drops 37% Year-on-Year​

Low amount of big releases in games this quarter both in 1st and 3rd party combined with increased costs due to the acquisition of Bungie. Even considering that, they had $400M in profits this quarter for the game division and plan to have $2B in profits this year even if they will include this year costs of Bungie's acquisition.

 

[Bernd Lauert]

Huge drop when you consider that Yen value has fallen down the cliff. Real revenue is at -10% or so (didn't do the exact math).

 

[Remember_Spinal]

Revenue is before any of that. Reinvesting would affect net income. But being down 2% is “ok” I guess given their issues. Could still be doing better. They need more games beyond god of war.

Wonder what Nintendo will look like.

Sony really didn’t have any big 1st party or 3rd party releases this spring, April to June.

It was a pretty huge drought for everyone. Nintendo might be ok since they releases strikers and switch sports which while aren’t huge games still sold enough

 

[Sircaw]

 

[nominedomine]

Seems like the PS+ changes killed game sales, I at least haven't bought anything since then. That's what they get for copying Xbox business model.

Not great but way better than the competition regardless, Sony isn't ashamed to share hardware units and profit numbers.

They really need to move past this supply problems, it's holding back this gen for way too long.

79% digital? What is wrong with you guys?

 

[thelastword]

Seems like the PS+ changes killed game sales, I at least haven't bought anything since then. That's what they get for copying Xbox business model.

Not great but way better than the competition regardless, Sony isn't ashamed to share hardware units and profit numbers.

They really need to move past this supply problems, it's holding back this gen for way too long.

79% digital? What is wrong with you guys?

That's to be expected with all their investments recently. However the upshot is that they are finally regularizing PS5 production, so that should boost everything up next quarter.

Oh and fully digital is how I've been rolling since PS4. Shadowfall is the only PS4 disc I had, and I still bought it digitally later.

 

[nominedomine]

Oh and fully digital is how I've been rolling since PS4. Shadowfall is the only PS4 disc I had, and I still bought it digitally later.

Oh so you are one of the ones that did this? Shame on you.

 

[ethomaz]

Revenue is before any of that. Reinvesting would affect net income. But being down 2% is “ok” I guess given their issues. Could still be doing better. They need more games beyond god of war.

Wonder what Nintendo will look like.

They could be doing better if they had more consoles to sell... that is the main issue Sony have right now.
Plus April to June didn't have any big release either first-party or third-party to offset the drop in software revenue.

 

[ethomaz]

Seems like the PS+ changes killed game sales, I at least haven't bought anything since then. That's what they get for copying Xbox business model.

Not great but way better than the competition regardless, Sony isn't ashamed to share hardware units and profit numbers.

They really need to move past this supply problems, it's holding back this gen for way too long.

79% digital? What is wrong with you guys?

I don't think PS+ change affected anything yet.
It just 3rd-parties didn't launch neither big in the period... Sony tells several times in the document about the lack of 3rd-party game and DLC/constent sales this quarter.
No big first-party game was released too.

That is what happens when you don't release games.

 

[nominedomine]

I don't think PS+ change affected anything yet.
It just 3rd-parties didn't launch neither big in the period... Sony tells several times in the document about the lack of 3rd-party game and DLC/constent sales this quarter.
No big first-party game was released too.

That is what happens when you don't release games.

We'll see, not releasing games seems to go hand in hand with the focus on these services.

I ain't buying anything except games I'm 100% sure about being bangers that I can't wait to play. When my PS+ runs out I'll reevaluate.