Sony reported 1.5 million PS5 units sold in Q4, down 46% year-over-year. The company forecasts its gaming business annual sales will fall 6% to $1.69 billion, citing rising memory chip costs.
Sony's gaming division faces headwinds from elevated semiconductor prices, which are squeezing margins despite higher overall operating profit expectations.
The 46% quarterly decline marks a significant slowdown in console sales momentum. Q4 typically represents strong demand during the holiday season, making the drop particularly notable.
Memory chip costs have emerged as a primary constraint on the gaming business forecast. The price surge affects manufacturing costs for PS5 hardware and related components, pressuring profitability even as sales volumes decline.
Sony projects $1.69 billion in gaming business revenue for the full year—a 6% decrease from prior year guidance. The company attributed the revised outlook to both semiconductor supply dynamics and market conditions.
The forecast suggests ongoing challenges in the console market as manufacturers balance production costs against consumer demand and pricing power.
Nvidia is officially bringing DLSS 5 to RTX 40-series GPUs alongside its RTX 50 launch, but will restrict developer control over the technology's settings.
Microsoft is imposing usage limits on Game Pass game streaming, affecting over 1 million subscribers who will face additional charges for exceeding thresholds.
Microsoft is imposing monthly time limits on Xbox cloud gaming for non-console users. Players accessing games through phones, tablets, and other devices will be restricted to between 5 and 15 hours per month.
Epic Games has launched cross-platform voice chat across Fortnite and its broader service ecosystem, enabling players to communicate seamlessly regardless of their device or platform.