PS5 sales are losing to PS4

The PlayStation 5 era is officially entering a phase where hardware reality is meeting market expectations, and that reality involves some significant price adjustments for consumers. While Sony continues to deliver massive engagement, the console market is showing that the initial enthusiasm often bumps up against the complexities of supply chains and evolving consumer priorities.

Looking at the numbers from the last quarter, the PS5 experienced a modest increase in sales, moving 1.6 million units compared to the previous quarter’s 1.5 million. However, when you put those figures into perspective against the preceding year, the story shifts: this represents a sharp decline of 36% compared to the same period in 2025. This shift highlights a broader trend across the console landscape.

Over its lifespan, the PS5 has sold a staggering 95.3 million units. This total is especially interesting when contrasted with the PS4, which managed 100.2 million units over its lifecycle—a figure achieved partly through consistent discounts and a steadily decreasing Manufacturer’s Suggested Retail Price (MSRP).

The transition from the previous generation has not been without friction. The ongoing scarcity of crucial components like RAM and other essential parts has unfortunately led to console prices increasing instead of decreasing, a first for PlayStation hardware. This situation forced Sony into an uncomfortable position, as they struggled to manage component costs while maintaining demand.

While the hardware market faced these supply challenges, the software side of the business continued its upward trajectory. Revenue from hardware sales saw a slight dip of almost 10%, but digital game sales demonstrated resilience and growth, climbing from 78% to 82% during Q1. Furthermore, Sony successfully navigated significant industry pushback by ending PS5 disc production, which, while causing some noise, ultimately streamlined operations for the future.

The platform’s community remains vibrant, with monthly active users soaring to 125 million people utilizing Sony’s services. Despite these commercial adjustments, overall sales across the game and network divisions remained steady, bolstered by favorable economic factors such as US tariff refunds and beneficial exchange rates, which helped boost profits by 37%.

Sony has confirmed that they have successfully secured the necessary quantity of memory to manufacture all the consoles expected for the current year. The next few months are poised to be pivotal, particularly with the highly anticipated release of GTA 6 on the horizon, which is expected to provide a significant sales boost heading into the holiday season.