Sony Q4 Earnings: PS5 Sales Drop 46% on Chip Shortages

Sony Group Corp. reported earnings for its fiscal fourth quarter and full year ended March 31, 2026, revealing a 46 percent drop in PlayStation 5 console sales to 1.5 million units in the quarter amid ongoing memory chip shortages that have driven two price hikes for the console within a year. The Tokyo-based company forecast a six percent decline in gaming division revenue for the fiscal year ending March 2027, even as overall operating profit is expected to rise 11 percent to 1.6 trillion yen, or about 10.2 billion dollars.

Gaming division revenue for the full fiscal year edged up slightly to 4.69 trillion yen from 4.67 trillion yen the prior year, with operating income increasing 12 percent to 463.3 billion yen, bolstered by higher PlayStation Network sales. Quarterly operating profit, however, fell 24 percent to 163.5 billion yen, missing analyst expectations due to impairment charges, including losses tied to Bungie, the studio behind Destiny 2, which saw weak sales. Sony sold 16 million PS5 units over the year, down from the previous period.

The company attributed slumping hardware sales to constrained memory procurement, stating that fiscal 2026 PS5 volumes and...