The PS4 has had a fun run so far bringing a lot of joy for many gaming fans around the world but reports coming in show its era is soon coming to an end.
The PlayStation 4, which was launched in 2014 to replace its old counterpart the PS3 has sold over 73.6 million untis as of December 31, 2017 and shipped around 79.0 million of them as of March 31, 2018 generating a cumulative cash flow of more than 700 billion yen ($6.31 billion) for Sony from the 2013-2017 fiscal years.
However, the soon to be phased out console is still going strong despite the downturn in hardware sales. Sony is making most of its money from online services that it provides through PSN (Playstation Network) with subscriptions growing every day.
Playstation Plus grew by 60 percent in the two years leading up to April 2018, and the company plans to capitalize on that by adding new games and creating exclusive game franchises to further boost numbers.
Three years ago, Andrew House, then-CEO of the PlayStation division, said that 2015 was “the beginning of a harvest period” for the PS4 which lietrally meant that it was the time in which the company reduces investment in the product’s life cycle.
ALSO READ: PlayStation 5: Is It Coming Soon?
But in view of the recent notes made by the current PlayStation CEO John Kodera, it definitely showed that the PS4 is entering the final phase of its life cycle.
Speaking to investors, PlayStation boss John Kodera outlined the company’s three-year roadmap and it seems console sales are not expected to be a major source of revenue going forward.
This also confirms the PS5 rumors that the console could soon hit the market. As hardware sales keep declining, Sony seems to be already gearing up for another console release as Kodera noted but didn’t specifically say when it was going to happen.
However, he did note that the company plans to “crouch down” until March 2021, which might be when we see a new offering, although it’s likely he’s alluding to an expected slowdown in profits until that time, while the company fortifies itself against the drops in fortune it’s seen with other console generations. Its online services are doing well to bridge that gap
The whole statement is largely designed to reassure investors that all is well, and it is, save for PSVR and Vue, both of which are performing below expectations. Again, no specifics on how PlayStation plans to tackle that beyond “increasing user engagement”, but Kodera seems unfazed, noting that the company will aim for more “realistic” growth in the coming period.
Sony projects it will sell 16 million consoles during the current fiscal year, down from 19 million in the previous year. And Kodera said today that although PlayStation VR is growing, the virtual reality market’s growth hasn’t fulfilled the industry’s expectations.
So, as the tables turn for the PS4, we should be getting our pockets ready for another console release by 2021 if predictions are right.
Source: Rachel England (engadget.com)
Allan Bangirana is a freelance writer for Newslibre and Spur Magazine. He is also the co-founder of the Innovware project.
He is a freelance consultant passionate about tech, programming, games and entertainment.