Sony said it plans to ramp up production of the PlayStation 5 console as the supply chain turmoil eases, and said it would radically expand its gaming portfolio to include more PC and mobile titles.
The PS5, which went on sale in November 2020, sold less than its predecessor in its second year as component shortages disrupted the electronics industry. But it’s expected to close the gap in year three and surpass the PS4’s installed base the following year.
In addition to the initial boost, “we plan to further significantly increase console production, taking our production to unprecedented levels,” Sony Interactive Entertainment CEO Jim Ryan said during an investor briefing.
While China’s COVID-19 lockdown continues to create uncertainty for supply chains, “things are definitely improving,” Ryan added.
Sony forecast PS5 sales of 18 million units in the fiscal year ending March, compared with 11.5 million a year earlier.
Ryan outlined the PlayStation’s shift away from focusing solely on its platform-exclusive single-player games, stating that there will be more PC and mobile titles in addition to a live service of games that are constantly being updated.
While PS4 and PS5 games are expected to account for more than two-thirds of this year’s releases, PC and mobile games will account for nearly half of new titles by 2025.
“The move to broaden our audience … will have a fundamental impact on the shape of our games portfolio,” Ryan said.
With this shift, PlayStation aims to keep pace with changes in the industry, as cloud technology and increased computing power in smartphones free users from clunky hardware and gamers pay more for free online games.
With many speculating that the Metaverse, or the idea that users will spend more time in simulated environments, will upend industry business models, Ryan said many consumers will continue to play games as before.
“There’s going to be many, many individual gamers who prefer to enjoy games the way they’ve played them for the past 30 years or more,” Ryan said.
© Thomson Reuters 2022