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PlayStation 5 sales hit $3.8 billion within months, selling over eight million units

Sony Q2 PS5 sales up over a million from previous quarter

Sony and Microsoft are increasingly banking on next-generation gaming consoles to solidify their position in the industry amid soaring demand. However, based on estimated revenue, Sony appears to be winning the battle. 

According to data acquired by Finbold, Sony’s Playstation 5 has generated an estimated $3.8 billion in revenue from selling about 8.6 million consoles with an average price of $449.99 per unit. Microsoft’s Xbox X/S revenue stands at an estimated $2.04 billion globally, selling 5.12 million units at an estimated $399.99 per console price. Cumulatively, both consoles generated revenue of about $5.92 billion.

Comparatively, the PlayStation sold 3,520,000 PS5 units more than Xbox’s X/S series consoles. Elsewhere, PlayStation 5 revenue is 89.42% higher compared to Xbox’s X/S revenue. 

Sony winning battle on next-generation gaming consoles

As the successor of the PlayStation 4 console, the PS5 introduced a next-generation machine with improved graphics and performance and exclusive titles that can’t be found on other platforms. Elsewhere, Microsoft (NASDAQ: MSFT) also launched its Xbox Series X/S console along with paid subscription plans in a bid to build out its gaming ecosystem.

However, Sony is winning the battle based on the revenue mainly due to exclusive titles that remain a significant selling point. Notably, Microsoft is usually seen as lagging in exclusive titles, but the company is working towards catching up with new investments. Overall, the two manufacturers are betting on software and services to drive revenues for their latest game consoles.

Worth noting is that the sales of the two consoles also highlight the impact of the coronavirus pandemic. As people spent more time indoors due to stay-at-home measures imposed worldwide, there was a demand for gaming services as an alternative form of entertainment amid the banned physical engagements.

Notably, regions in North America and Europe went into extended lockdowns, and they have emerged as top consumers for the two-game consoles.

Console production hit by supply chain constraints  

Despite the record revenues, the PS5 still hasn’t caught up to the demand of consumers. However, the company expects the supply chain will gather pace later in the year. 

The sales could have been higher, considering retailers resorted to selling the consoles online amid the high demand. However, the demand for both consoles has remained high, with most retailers running out of stock with supply remaining constrained. Furthermore, as a safety measure, production lines were temporarily shut down, significantly slowing the availability of new consoles in the market. 

Additionally, the supply for the consoles might extend further in 2021 due to the global semiconductor shortage that has hit the electronics world. 

Moving forward, the sales and demand for the two consoles will be defined by the supply. However, with economies reopening, the production capacity should be scaled higher. 

In general, based on what the two machines are offering, they are projected to outperform their predecessors in the console market. 

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