Sony has announced its financial results for Q1 FY24 (ending June 30, 2024), reporting higher operating income and sales than expected. Within its gaming and network services division which includes PlayStation, Sony’s sales totaled approximately $6.18 billion, up 12% from $5.51 billion in the same period the previous year.
As a result of this performance, the Japanese conglomerate has raised its projections for its current financial year overall and within its gaming operations. In May, Sony expected its gaming revenue to total about $30 billion in FY24. Now, it has raised these projections 3% to roughly $30.9 billion.
As a result of this revision, Sony actually expects its gaming revenue to grow in FY24, rather than declining slightly from its FY23 gaming sales of $30.5 billion.
Sony’s operating income has also grown alongside its sales. It’s roughly $465 million in operating income during Q1 FY24 represents 33% growth from the same period the previous year. Like its sales projections, Sony raised expectations for operating income up 10% to $2.3 billion for FY24 vs. $2.1 billion in FY23.
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What drove Sony’s gaming growth
Sony points to a variety of factors driving the company’s significant growth in gaming, including foreign exchange rates and an increase in first-party game and network services (mainly PlayStation Plus) sales. The company had a major hit earlier this year with Helldivers II — currently the best selling game in the U.S. year-to-date.
Of course, this is offset somewhat by declining hardware sales. In January, Sony reported selling over 50 million PlayStation 5 units globally since the console’s November 2020 debut.
Notably, the company indicates that its operating income grew for slightly different reasons. While both first-party game sales and its increased network services revenue impacted operating income, the company also highlighted growing unit sales of PlayStation 5 peripherals.
Sony is officially entering into a new chapter in the coming quarter. In June, Hideaki Nishino and Hermen Hulst took over for former PlayStation head Jim Ryan, who retired earlier this year.
