Sony Aims to Increase PlayStation Sales to Between 1,400 and 1,600 Billion Yen by Fiscal Year 2017

Sony is holding the Investor Relations Day for the Electronics segment of the business in Tokyo, and the company also published new data on the PlayStation division.

At the bottom of the post you can see all the slides of the presentation by Sony Computer Entertainment President and CEO Andrew House.

We learn that Sony’s goal is to increase the sales of the Game & Network Services Segment to between 1,400 and 1,600 billion yen (between $11.8 and 13.5 billion), with an operating income margin between 5% and 6% by Fiscal Year 2017.

This is radically higher than the already announced forecast for the current fiscal year of 1,290 billion yen in sales, with an operating income of 35 billion and an operating income margin of 2.7%.

We get a chance to see the ratio of sales of the PlayStation division in the past Fiscal year, split between hardware and software and region, showing that the Americas are currently on par with Europe and the Middle East combined.

The strategies for the mid-term are to retain and expand engaged PlayStation users (at the moment there are over 50 million active monthly users for the whole brand),  and to increase the ARPPU (Average Revenue Per Paying User) of the business.

In order to enable the first strategy, Sony wants to deliver new experiences and reduce hardware cost (presumably to reduce price in turn), acquire casual users while using strong titles to strengthen the engagement of core gamers as well, and expand the customer base with innovative network services like PlayStation Now.

Enhancing PS4′s game features to maintain and strengthen competitive advantage and targeting new markets like Latin America and China are also priorities. During the presentation House mentioned that Asia is seeing a very significant growth for the PlayStation business.

In order to increase the ARPPU, the company aims to get a higher conversion rate and improve retention rate of PlayStation Plus by enhancing its user value, to create more more demand for personalized TV, Video and Music distribution services and to increase revenue via partnerships with “best-in-class” third party services.

Finally, we see that the number of PlayStation Plus subscribers quadrupled since the launch of PlayStation 4, which is definitely an achievement.

Source: http://www.dualshockers.com/2014/11/24/sony-aims-to-earn-between-1400-and-1600-billion-yen-with-playstation-this-fiscal-year/

Last generation, Wii was the best selling console and the most popular. This generation it is PS4. Up until now we have seen identical sales between the two, during their first year on the market. I think it is 'okay' to use Wii's results to somehow predict this Holiday.

Here goes.

-----Wii 2007--------------------PS4 2014-----

Nov 03: 296,372-----------Nov 01: 336,109 = 13,41 %
Nov 10: 282,996-----------Nov 08: 555,726 = 96,37 %
Nov 17: 469,651-----------Nov 15: 502,084 = 06,91 %
Nov 24: 673,069-----------Nov 22:
Dec 01: 699,757-----------Nov 29:
Dec 08: 728,498-----------Dec 06:
Dec 15: 686,612-----------Dec 13:
Dec 22: 1,462,609---------Dec 20:
Dec 29: 737, 820-----------Dec 27:

3 Weeks: 1,049,019-------3 Weeks: 1,393,919 = 32,88 % 

Total: 6,037,384-----------Total: 8,022,475 (estimated)


Judging by the numbers, the PS4 could very well end 2014 with 20-21 million. 

They need to get PS now rolling as soon as possible.. And make it a go to service for gaming on every single device that streams data..... Ps1/PSP titles on android devices and iOS.... With unlimited streaming for like 10 a month or something... It could turn Sony into a bigger gaming brand than it is

Pssh~ We all know Sony would be bankrupt by then. Its a doomed company!

20 million is insane. But after reading your comparison it seems possible. Damn.

Isn't't include money they make with playstation now ,ps+,playstation vue?

A price cut in the USA would significantly drive sales. It's not necessary though and I don't plan to see one until after E3 next year.

^^^^^^They don't need to either. I mean ms chose to have a price cut and give away games to generate some momentum. But Sony already have the momentum and will try and keep the price high.

A few deals for black Friday, standard, then back to normal because they can. They will do what's best for they company and potentially losing a few months will not effect their strategy despite some people shouting for a price cut just because Sony lost a few weeks in us and UK. 

By the sound of it, they are somewhat aggressively looking to decrease the cost of manufacture. I think they want to get to that $299 sweet spot ASAP. And when they do, WW obliteration.

I must say, they are doing very well... but is it really possible for them to produce that many PS4s?