Sony CEO Says PS4 Entering End of Its Life Cycle, PSVR Growth Below Market Expectations

Going forward, services and software will carry the most weight.

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The PlayStation 4 hit the scene on November 15, 2013, and has moved over 70 million units since. Hardware sales are slowing up while software continues to climb and, almost five years later, Sony's PS4 is entering the final phase of its lifecycle.

GameIndustry.biz reports via a Wall Street Journal reporter that Sony's management has expressed to investors that the final phase of the PS4 is upon us. The news comes from a presentation led by Sony CEO Kenichiro Yoshida where the team set the expectation that the bulk of profit will come from services instead of hardware.

The report goes into further detail regarding Sony's strategy going forward:

"In an official statement about the strategy, Sony emphasized the importance of expanding the audience for PlayStation Network, which has annual sales exceeding ¥1 trillion and more than 80 million MAUs. Key metrics used to measure progress will be frequency of logins and time spent per session, while Sony also said it aims to increase subscriber numbers for PlayStation Plus.
Kodera said that Sony would be investing in more exclusive games for PlayStation platforms, including both new IP and refreshing existing IPs. However he described the period leading up to March 2021 as a time for SIE to "crouch down" while preparing for more growth after that point."

The PlayStation 4's massive install base, refocusing on services and software should serve the company well as the company begins its transition to their next console. PSVR, on the other hand, was presented as a challenging area that needs improvement alongside the PlayStation Vue platform. 

Charles Singletary Jr keeps the updates flowing as the News Editor, breaking stories while investigating the biggest topics in gaming and technology. He's pretty active on Twitter, so feel free to reach out to him @The_CSJR. Got a hot tip? Email him at Charles.Singletary@Shacknews.com.

From The Chatty