Sony has released its PlayStation FY2024 financial results, showing strong growth in digital sales and record operating income for its gaming division. The company’s Game & Network Services segment brought in ¥4.6 trillion ($31.5 billion) in revenue and ¥414.8 billion ($2.8 billion) in operating income—a 9% and 43% year-over-year increase, respectively.
Sony’s results follow fiscal updates from Capcom and Sega, who also reported strong earnings fueled by digital sales and key franchises. But unlike those publishers, Sony faces added pressure from hardware declines and looming U.S. tariffs.
Despite the gains, hardware sales slowed. Sony shipped 18.5 million PS5 consoles in FY2024, down from 20.8 million the year before. That brings lifetime PS5 shipments to 77.8 million units. First-party software also saw a drop, with 28.9 million units sold, down from 39.7 million. However, total software sales reached 303.3 million, driven largely by third-party titles and add-on content.
Digital revenue remains a core strength. 76% of all games sold were digital downloads, and network services revenue—including PlayStation Plus—rose 23% to ¥669.8 billion ($4.5 billion). PlayStation Network now boasts 124 million monthly active users, up 5% from last year.
Looking ahead, Sony expects a 6.5% decline in G&NS revenue due to falling hardware sales and foreign exchange pressures. The company also warned of a potential ¥100 billion ($680 million) hit from U.S. tariffs. To offset this, Sony is considering price hikes and moving PS5 production to the U.S.
Let’s take a closer look at how digital growth, third-party sales, and shifting hardware trends shaped the year for Sony.
PS5 Shipments and Hardware Performance Slowed in FY2024
Sony shipped 18.5 million PS5 consoles in FY2024, down from 20.8 million the year prior. This marks the first annual decline in PS5 unit sales since launch. For the final quarter alone, shipments dropped to 2.8 million—1.7 million fewer than Q4 FY2023.
That brings total lifetime PS5 shipments to 77.8 million as of March 31, 2025. PS4 followed a similar trajectory when aligned by launch. Sony acknowledged a slowdown in demand and expects further declines in hardware sales next year.
Hardware revenue for the full year also fell 6% year-over-year, down to ¥1.6 trillion ($10.9 billion). Sony attributed this dip to lower unit sales and a softer quarter-over-quarter comparison. Despite the slowdown, CEO Hiroki Totoki noted during the earnings call that PS5 manufacturing remains flexible and could shift outside of China if needed.
Digital Sales and Third-Party Titles Drove Software Growth
Sony sold 303.3 million games during FY2024, a 6% increase over the previous year. This rise was driven by strong third-party releases and growing demand for add-on content. Of that total, first-party software accounted for 28.9 million units—down from 39.7 million the year before.
Digital distribution continued to expand. Full-game digital downloads made up 76% of software sales for the full year, climbing to 80% during the final quarter. Sony earned ¥2.2 trillion ($15 billion) in digital software and add-ons, reflecting a 16% year-over-year increase.
Network services also played a major role in the division’s performance. Revenue from services like PlayStation Plus rose 23% year-over-year to ¥669.8 billion ($4.5 billion). Sony ended the fiscal year with 124 million monthly active users on PlayStation Network, up from 118 million at the same point last year.
Record Operating Income Despite Slower Q4
Sony’s Game & Network Services segment posted strong full-year growth, generating ¥4.6 trillion ($31.5 billion) in revenue, up 9% from the previous year. Operating income surged 43% to ¥414.8 billion ($2.8 billion), setting a new annual record for the division.
Much of that growth came from digital software, network services, and third-party sales. Hardware revenue declined, but rising engagement and spending across PlayStation Network helped offset the drop.
Performance in the final quarter told a different story. G&NS revenue fell 3% year-over-year to ¥1.05 trillion ($7.1 billion), while operating income dropped 12% to ¥92.7 billion ($630 million). Slower hardware and first-party software sales contributed to the weaker Q4, though engagement remained strong.
FY2025 Forecast and Tariff Impact Create Uncertainty
Looking ahead, Sony expects a 6.5% drop in Game & Network Services revenue for FY2025, forecasting ¥4.3 trillion ($29.2 billion). The company attributes this decline to continued weakness in hardware sales and the effects of foreign exchange rates.
A major new risk comes from additional U.S. tariffs on China-based imports, which could cost Sony up to ¥100 billion ($680 million) in operating income. Most PS5 hardware is still manufactured in China, putting the platform in a vulnerable position. In response, Sony is considering relocating production to the U.S. and increasing consumer prices.
During its earnings call, CFO Lin Tao said Sony may pass some of the tariff costs on to consumers. CEO Hiroki Totoki also acknowledged that producing the PS5 locally is an “efficient strategy” now being seriously evaluated.
While the company didn’t confirm which products would be affected, the situation puts added pressure on its hardware business going into FY2025.
Sony Posts Record Gaming Profits Amid First-Party Software and Hardware Decline and Tariff Uncertainty
Sony’s FY2024 results show a strong year for digital growth and network services, even as hardware shipments and first-party sales declined. The Game & Network Services division delivered record operating income, driven by third-party software and rising digital engagement.
But Q4 softness, falling hardware revenue, and a sharp drop in first-party output hint at challenges ahead. With new U.S. tariffs on the horizon, Sony is preparing for added pressure in FY2025, including possible price increases and manufacturing shifts.
Sony hit a record year—but can it keep momentum with hardware declines and tariff risks ahead? Let us know what you think.
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