PlayStation Has Swiftly Solved Its Profitability Problem

The manufacturer cited increased hardware profitability and improved third-party game sales as the reason for the change. It specifically pointed to Soulslike sensation Black Myth: Wukong as one game that significantly lifted its profitability this quarter.

Of course, it’s worth noting that the increased hardware profitability has resulted in price increases in some countries, such as Europe and Japan. We also suspect the PS5 Pro is being sold at a very large profit.

There’s also been a bunch of layoffs and studio closures. Obviously it won’t factor into these results, but Firewalk Studios and Neon Koi were recently shuttered.

So it’s not all good news, but PlayStation did need to become more profitable. While it’s always managed to amass absurdly high revenues, its margins had been razor-thin recently. It’s now streamlined the business in a way that gives it more breathing room, which is a net positive for the health of the company.

[source sony.com]