Sony released its Second Quarter Earnings Report for fiscal year 2022 and it shows that their gaming division with PlayStation suffered a pretty dramatic drop in operating profit.
This massive drop is around 59%, when converted to USD. Such a massive drop is due to the weakening of the Japanese yen, but also to another major factor.
The other factor driving down revenue is that PlayStation recorded its worst microtransaction revenue since 2019.
Compared (via TweakTown) to last year at this point, revenue generated from add-on content, which includes microtransactions, DLCs, and expansions, is down significantly by more than 20% or $347 million.
It should be noted that 2021 was their all-time high, but the second quarter of 2022 is roughly similar to their values in the second quarter of 2019, just before the COVID pandemic caused the company’s revenue to explode.
This drastic drop in revenue via add-on content can also be explained by their sharp drop in PlayStation Plus subscribers, where nearly 2 million users canceled their submarines shortly after its relaunch in June. This may impact their monthly average users, which are also at their lowest since 2019.
Fewer active players means fewer players buying microtransactions, most of which come from titles such as Call of Duty, Genshin Impactand fortnite, for Sony.
It could be a problem if the former ends up being taken down after Activision Blizzard is officially acquired by Microsoft, but luckily for Microsoft, Phil Spencer has been saved. saying it will stay with the platform as long as it exists.
Luckily for Sony, it’s not all bleak, as it’s not just a games company. Their music division has seen their operating revenue increase significantly and they have some big hits coming up to boost their revenue like the next God of War Ragnarök.