During the last financial quarter, Sony Group Corp. (NYSE:SONY) significantly outperformed Microsoft Corp. (NASDAQ:MSFT) in console shipments, with the PlayStation 5 (PS5) shipping nearly five times more units than the Xbox Series X and S.
According to IGN, Sony announced this week that it shipped 4.5 million PS5 units during the three-month period ending March 31, 2024, a decrease from the 6.3 million shipped in the same period the previous year.
In contrast, Microsoft reported a 31% decline in Xbox hardware revenue and, while it does not disclose specific sales figures, estimates suggest it shipped around 900,000 Xbox Series X and S consoles.
Daniel Ahmad, director of research and insights at Niko Partners, highlighted this disparity, noting that the PS5 outsold the Xbox Series X and S by a ratio of 5:1 during the quarter.
Historically, the gap between the two consoles was closer to 2:1, with lifetime sales of Xbox Series X and S potentially around 29 million units compared to the PS5's 59.3 million units. This widening gap indicates a growing lead for Sony.
Moreover, Ahmad noted on X (formerly known as Twitter): "The PlayStation 5 has sold 59.2 million units as of March 31, 2024. This is slightly behind the PS4 in the same time frame (60 million). They do not expect the PS5 to surpass the PS4 in the next year."
"In other words, while console hardware sales are healthy, Sony is unable to sell more than the prior gen," the analyst added.
4. The PlayStation 5 has sold in 59.2 million units as of March 31, 2024.
— Daniel Ahmad (@ZhugeEX) May 14, 2024
This is slightly behind the PS4 in the same time frame (60 million). They do not expect the PS5 to surpass the PS4 in the next year.
In other words, while console hardware sales are healthy, Sony is... pic.twitter.com/ExaMQZKQfn
The declining sales for Xbox hardware are not entirely unexpected, given Microsoft's strategic pivot away from prioritizing console sales.
Microsoft has openly acknowledged losing the console war to Sony and is increasingly focusing on software and services, even selling Xbox games on rival platforms like the PS5.
Microsoft's gaming business also faced internal challenges, including significant layoffs and the closure of studios such as Arkane Austin and Tango Gameworks. These measures come in the wake of the $69 billion acquisition of Activision Blizzard, which has placed additional financial pressure on the company.
Meanwhile, Sony appeared to be gearing up for the next phase of its console lifecycle, with plans for a PS5 Pro model and the anticipated release of major titles like Grand Theft Auto 6.
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