In a recent investor Q and A, Sony Senior Vice President Hiroki Totoki was asked what will be the keys to improving the company’s operating margin. In response, Totoki stated that “strong titles that achieve growth on PlayStation 5, PCs, and other platforms will widen our margins.” This may suggest that the company could release more of its first party titles on other platforms such as Nintendo and Xbox, or it could mean they will only also launch on mobile devices. Recently, Sony Interactive Entertainment stated that it does not plan to release “any new major existing franchise titles next fiscal year”. As the fiscal year Begins on April 1 and ends on March 31, 2025, this means no new major first party titles will be released for the entirety of this year.
The full quote can be seen below:
‘When it comes to PlayStation 5, one challenge that sets this console cycle apart from PlayStation 4 and previous generations is that we find it difficult to reduce our costs during the course of the cycle. Unlike high-spec PCs, PlayStation consoles enable us to offer an immersive experience for many people in a safe environment with affordable price. To offer that kind of experience, with costs for components like chips and memory on the rise, one key will be that we continue to sell consoles without substantial discounts [during the course of its product life cycle] by engaging in product planning that ensures affordability for consumers. Another driver will be first party titles. Strong titles that achieve growth on PlayStation 5, PCs, and other platforms will widen our margins. We believe that we have opportunities for margin improvement and intend to pursue them aggressively.’
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