PlayStation 5 has managed to reach its break-even point within the first half of the 2021 calendar year and hence, is now officially profitable.
According to a report by Bloomberg earlier today, chief financial officer Hiroki Totoki has confirmed that the $500 PS5 standard edition is “no longer selling at a loss.” The $400 PS5 digital edition on the other hand is “on track to have its loss offset by other hardware sales including peripherals and the PS4.”
PlayStation 5 and Xbox Series X have both been selling at a loss since launch, but it is the former console which has broken even first. The impressive milestone comes unsurprising since Sony Interactive Entertainment CEO Jim Ryan had already stated back in May that the $500 PS5 flagship was “close to becoming profitable” and would “enter the break-even point next month.”
Sony has been banking on cloud-based gaming and virtual reality to push gaming growth in the future but for now, launching PS5 in China has proven to be a decisive factor on the part of the company. Last week, Ryan called out China for having “the same sort of energy” as in the west, implying a similar high demand. Sony will now be doubling its efforts to further expand in China.
More than 10 million PlayStation 5 consoles have been sold worldwide, despite a crippling supply shortage due to the COVID-19 pandemic. Sony has been considering all options to push as many more console units out there as possible but will still be unable to meet the significantly high demand.
PS5 has already become the fastest-selling PlayStation console in history. With the 2021 holiday season on the horizon, expect the already strong demand to become even stronger as everyone attempts to fight off scalpers for an available console unit. Sony has made no promises but hopes that the supply situation will improve in time for the crazed shopping season.