Sony CFO Hiroki Totoki confirmed during the company’s earnings briefing on Wednesday, that the disc-based edition of the PlayStation 5 is no longer being sold at a loss.
According to Bloomberg, the $400 digital edition is still being sold for a loss though, but this is offset by more margin-rich hardware like peripherals and the PS4. Although the PS4 has mostly run its course in the gaming world, it managed to ship another 500,000 units during the April-June period.
Meanwhile, Sony’s video game division posted an overall 2% increase in sales. However, total operating profit took a dive during the last quarter due to a decrease in sales of non-first-party games and DLC. This was also attributed to losses from the PS5. Sony said it was taking a loss on the console due to “strategic price points” which helped to move more units.
Losing money on gaming systems is common during the start of a new console’s lifecycle, but it’s not true for every one. Nintendo’s extremely popular Switch console was sold at a profit from the beginning. Microsoft has yet to offer specifics about the profit margins of its new Xbox consoles.
Sony’s earnings report also brought details about PS5 shipment figures and PlayStation Plus subsription numbers. The company also stated it has secured enough components to reach its PS5 sales goals. Additionally, PlayStation Now is steadily growing.