PlayStation Is the “Largest Growth Driver” for Sony

by Sohrab Osati | Jul 1, 2016 | 5 comments
Sohrab Osati

Sony_Corporate_Strategy_Meeting_2While a lot of Sony’s business like cameras are doing well and other divisions like TV have finally become profitable, none are experiencing growth like PlayStation. During a recent  Corporate Strategy Meeting in Tokyo, Sony had this to say to investors:

  • Sony considers the Game and Network Services segment the largest growth driver of its mid-range corporate plan, and as of May 2016, PlayStation 4 has cumulatively sold through more than 40 million units to customers worldwide, continuing its rapid growth and expansion as the fastest-selling console in PlayStation history. The platform as a whole, including network services, is receiving widespread customer acclaim, and profit growth is exceeding the expectations held when the mid-range corporate plan was initially formed.

But beyond the PS4, network services like is expected to see a 50% increase in sales while the company gets more bullish on VR.

Sony_Corporate_Strategy_Meeting_1

  • The network services business is also continuing to grow, achieving a 50% increase in sales in FY2015 compared to the previous year. The user base is expanding, driven in particular by the PlayStation Plus membership service, and Sony has continued to engage in investment towards further growth.
  • Sony’s new PlayStation VR virtual reality system is scheduled to launch in October 2016. Sony has identified virtual reality as an area it believes offers great future potential for the Sony Group in games, as well as other areas. Virtual reality is an application in which Sony believes it can leverage its technological strengths in areas such as digital imaging, content acquisition and production, as well as its entertainment assets. The Company is accordingly engaging with virtual reality across the Sony Group, and also considering the possibility of cultivating it as a new business domain.

For Sony going forward, the key is going to be to expand what PlayStation is. As I mentioned earlier, we’re already starting to see that with things like PS VR and services like PS Now and PS Vue but Sony has a long way to go before any of them go mainstream and become meaningful growth drivers.

Discuss:

Do you think Sony is relying on PlayStation too much or are they being smart with how they’re expanding the brand?