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Sony CFO Explains the Change in Console Cycle, PS5 a Small Upgrade?

As the year ends, most video game companies are doing a roundabout of their annual earnings and sales. For Sony, this financial conference was this week, where investors and analysts could take a look at what Sony had achieved with PlayStation 4.  During this call, Sony Chief Financial Officer Kenichiro Yoshida talked about how Sony’s Console Cycle has changed and what were the reasons behind that.

Deeke77, a used on ResetEra has transcripted Yoshida’s words and made it public. Sony’s CFO words were:

There are mitigating factors that affect the console cycle so far. For one thing, the business model used to be B2B royalty model, but now it has shifted to a direct-to-consumer model.And in our business, main access to hardware is important, but rather than hardware, the number of users is getting more important–monthly average users, numbers of PS Plus subscribers, etc.And also how much time are they putting into this console–the ARPU? So the axis seems to be shifting from hardware to userbase.

Thirdly, there’s a change of revenue cycle. Clearly, in-game sales, for example: after the customer’s purchased the disc or after they download the software, then they can purchase items or offerings. So the in-game sales proportion is increasing. With all these points, the console cycle is being mitigated by these factors.

What Yoshida is saying is that for reasons mentioned above the company may have to change her console plans from being hardware-oriented to being userbase-oriented. What this practically means is that Sony will try and create consoles so that the players will be kept engaged.

What does this mean for a future PlayStation 5 console though? As it seems there might be a long time until we see a next-gen console from Sony, and if we see one named PlayStation 5 then it will merely be a small upgrade of PlayStation 4 Pro.