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PlayStation sales and revenue drop in the second quarter of 2016

After a few years on top of the world, thanks to the PlayStation 4, Sony’s Game Network Services division saw a drop in sales and revenue.

Sony released its financial report for the second quarter of fiscal year 2016. Overall, the company saw a 10.8 percent drop in sales and operating income. That translates to a decrease of roughly $16.7 million.

For the PlayStation department specifically, sales and operating revenue dipped 11.3 percent. Operating income dropped 20.6 percent (around $188 million). Sony’s report pointed towards the price drop of the PlayStation 4 and lowered sales for the PlayStation 3 for these numbers.

What about console sales? The PlayStation 4 shipped 3.9 million units during the reported quarter, and that’s only down 100,000 year-on-year. Sony still aims to sell 20 million consoles before the fiscal year is over.

The PlayStation 4 is set to face some stiff competition

While Sony positioned the PS4 perfectly at the onset of this console generation, the company needs to be more calculating with the approach of Nintendo and Microsoft. The PlayStation 4 Pro drops in a matter of days, and consumer feedback has been mediocre at best thanks to the rather bland nature of the upgrade. 4K gaming sounds great, but most consumers don’t even have a TV capable of displaying that output.

Microsoft is still at work on Scorpio, a piece of hardware that the company claims will be the most powerful home console ever made. Nintendo is in the process of finalizing the Nintendo Switch, a device that promises both home and portable gaming in Nintendo form.

Has the PlayStation 4 shine worn off a tad? I think it has. What will Sony to do keep its place on top of this generation’s heap?

Article source: http://www.technobuffalo.com/2016/11/01/playstation-sales-and-revenue-drop-in-the-second-quarter-of-2016/