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Sony’s PlayStation Revenue Rose 16% in the 2024 Holiday Quarter—But First-Party Sales Fell

Sony’s PlayStation segment had a strong 2024 holiday quarter, with sales up 16% and PS5 hardware volume higher. But first-party software sales fell, complicating the story behind the growth.
Length4 min Posted Quest giverVGSources Team
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Sony’s Game & Network Services segment generated ¥1.6823 trillion in sales in the quarter ended December 31, 2024, up ¥237.9 billion, or 16%, year over year. PS5 hardware volume, third-party software and add-on content, and network services all contributed. The counterpoint: sales of Sony’s own full-game titles fell, so the quarter was a story of platform strength rather than a first-party blockbuster surge.

What Sony’s 16% growth figure measures

The figure is segment sales growth—not profit growth, PS5 hardware revenue, or a measure of all PlayStation activity. Sony’s Game & Network Services (G&NS) segment reported ¥1.6823 trillion in sales for fiscal Q3 2024, the three months ended December 31, 2024, compared with ¥1.4444 trillion in the same quarter a year earlier. The increase was ¥237.9 billion, or 16%, on a reported-yen basis. Sony’s February 2025 earnings presentation attributes the rise to higher hardware sales, stronger non-first-party software and add-on content sales, and increased network-services revenue.

The quarter was also profitable: G&NS operating income rose 37% to ¥118.1 billion. Sony described it as a record third quarter for operating income, not an all-time record across every quarter. Adjusted OIBDA, a separate operating measure, increased 31% to ¥148.0 billion.

The holiday-quarter numbers

Metric FY2023 Q3 FY2024 Q3 Change
G&NS sales ¥1.4444 trillion ¥1.6823 trillion +¥237.9 billion; +16%
G&NS operating income ¥86.1 billion ¥118.1 billion +37%
PS5 hardware units reported 8.2 million 9.5 million +1.3 million
PS4/PS5 full-game software copies 89.7 million 95.9 million +6.2 million
First-party full-game software copies 16.2 million 11.6 million −4.6 million
Network-services sales ¥176.915 billion ¥199.276 billion +¥22.361 billion

Hardware and software unit figures are Sony’s reported figures for the respective three-month quarters; they are not a claim that every unit was purchased by an end consumer. The figures come from Sony’s supplemental unit and segment data. Sony also put cumulative PS5 shipments at approximately 75 million by the end of December 2024.

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Why sales grew even as Sony’s own game sales fell

More PS5 hardware in the quarter

Sony reported 9.5 million PS5 hardware units for FY2024 Q3, versus 8.2 million in the year-earlier quarter. That 1.3-million-unit increase helped lift segment sales. Hardware volume alone does not explain the whole result, and Sony said improved hardware profitability also helped operating income.

Third-party games and add-on content

Full-game sales across PS4 and PS5 rose to 95.9 million copies from 89.7 million. Yet first-party full-game sales moved in the opposite direction, dropping to 11.6 million from 16.2 million. Sony specifically cited non-first-party software and add-on content as contributors to sales growth. The picture is therefore not that Sony’s own releases drove a blockbuster quarter: third-party titles and spending within the wider PlayStation catalogue mattered.

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The comparison was also difficult for first-party sales because the prior-year holiday period included Marvel’s Spider-Man 2. The decline is a meaningful counterpoint to the overall growth, but it does not by itself show that total PlayStation software demand weakened.

Network services

Sony reported network-services sales of ¥199.276 billion, up from ¥176.915 billion a year earlier. That category signals the value of ongoing digital platform activity, but Sony’s segment disclosure does not make it interchangeable with PlayStation Plus subscription revenue alone. Sony’s presentation cited higher network-services sales as one contributor; it did not establish that this was the largest contributor.

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Profit improved, but hardware was not necessarily a profit engine

Operating income rose faster than sales, reaching ¥118.1 billion from ¥86.1 billion. Sony cited higher network-services and non-first-party software sales, reduced hardware losses, and lower first-party software sales as an offsetting negative. This distinction matters: Sony reported that hardware profitability improved and losses declined, not that the hardware business independently became profitable.

Sony also said promotion expense per PS5 unit on which a promotion was implemented declined approximately 20% year over year. PS5 inventory at the end of December was down 46% year over year. Those disclosures indicate that the higher quarterly unit figure did not coincide with greater reported inventory or proportionally higher promotion expense per promoted unit; they do not establish the margin on each console sold.

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Did PlayStation pull further ahead of Xbox?

As a description of momentum in the 2024 holiday period, the phrase has a basis: Sony reported higher PS5 unit volume and rising G&NS sales and operating income, while Microsoft’s contemporaneous results indicated pressure on Xbox hardware revenue. But “pulls further ahead” is an interpretation, not a market-share calculation.

Sony’s ¥1.6823 trillion covers a broad segment that includes hardware, games, add-on content, and network services. It cannot be compared directly with Xbox hardware revenue alone, nor do the available figures establish a precise global console-market-share gap, comparable gaming profits, or permanent dominance. Microsoft’s FY2025 Q2 income-statement page is useful company-level context, but it does not provide the full gaming-segment breakdown needed to substantiate those broader comparisons.

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What Sony expected for the year—and what later happened

Forecast made in February 2025

After the December quarter, Sony raised its FY2024 G&NS sales forecast by ¥120 billion to ¥4.610 trillion. It lifted the operating-income forecast by ¥25 billion to ¥380 billion and the adjusted OIBDA forecast by ¥25 billion to ¥500 billion. These were forecasts for the fiscal year ending March 31, 2025, not final results.

The next year’s comparable quarter

In the subsequent Q3 FY2025, G&NS sales were ¥1.6136 trillion, down ¥68.7 billion from the year-earlier ¥1.6823 trillion. Operating income nevertheless increased to ¥140.8 billion. Sony’s later earnings presentation shows why the February 2025 result should be read as a strong holiday quarter, not evidence that sales would keep rising at the same rate. The following comparable quarter had lower sales but higher operating income.

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