Sony is likely to reveal an updated version of the PlayStation 5 this year following a downward revision of sales projections for its flagship console.
The speculated move aims to reinvigorate interest in the PlayStation 5 and introduce an enhanced hardware edition in time for the highly anticipated release of Grand Theft Auto VI in 2025.
Having initially debuted in November 2020, Sony’s PlayStation 5 has now aged over three years. The company recently adjusted its forecast for PS5 sales for the fiscal year ending in March, reducing the estimate from 25 million units to 21 million units.
During the company’s earnings call, an executive mentioned expectations of a “gradual decline” in unit sales starting from the next fiscal year.
Historically, during similar phases in previous console cycles, gaming companies have introduced refreshed hardware iterations to stimulate sales. For instance, Sony introduced a “Pro” version of the PlayStation 4, the predecessor to the PS5, approximately three years after the initial PS4 launch.
Analysts anticipate the arrival of a PlayStation 5 Pro from Sony.
Serkan Toto, CEO of Tokyo-based games consultancy Kantan Games, remarked, “There seems to be a broad consensus in the game industry that Sony is indeed preparing a launch of a PS5 Pro in the second half of 2024.”
He emphasized Sony’s objective to ensure the availability of an impressive hardware platform upon the release of GTA VI in 2025, an event anticipated to have a significant impact on the gaming industry.
While Sony introduced a slightly upgraded PS5 last year along with a handheld console called the PlayStation Portal, the PS5 Pro is anticipated to offer a more substantial upgrade.
However, Sony is facing a significant challenge – profit margins in its core gaming business are currently at decade lows.
During the earnings call, Sony management highlighted the gaming business’s focus on “optimizing sales with a greater emphasis on the balance with profits.”
George Jijiashvili, senior principal analyst at Omdia, suggested that Sony may not reduce the price of the current PS5 even after the PS5 Pro launch, contrary to past trends. Consequently, a scenario where Sony introduces the PS5 Pro but experiences a decline in year-on-year hardware sales remains plausible.
