Sony is confident the PlayStation 5’s current hardware profitability will be maintained throughout March 2026, but profits could drop in FY2026 and beyond.
Senior Gaming Editor
Published Nov 11, 2025 5:35 PM CST
2-minute read time
TL;DR: Sony expects PlayStation 5 hardware profitability to continue through fiscal year 2025, ending March 2026, supported by secured component supplies. However, rising memory costs may reduce future profits, shifting focus to monetizing the existing PS5 installed base through software and network services to maintain overall profitability.
Sony says that the PlayStation 5 will maintain its current sales profitability throughout FY2025, but that period ends quite soon in March, and after that period it’s possible the PS5–and potentially the PS5 …
Sony is confident the PlayStation 5’s current hardware profitability will be maintained throughout March 2026, but profits could drop in FY2026 and beyond.
Senior Gaming Editor
Published Nov 11, 2025 5:35 PM CST
2-minute read time
TL;DR: Sony expects PlayStation 5 hardware profitability to continue through fiscal year 2025, ending March 2026, supported by secured component supplies. However, rising memory costs may reduce future profits, shifting focus to monetizing the existing PS5 installed base through software and network services to maintain overall profitability.
Sony says that the PlayStation 5 will maintain its current sales profitability throughout FY2025, but that period ends quite soon in March, and after that period it’s possible the PS5–and potentially the PS5 Pro–will be sold for less profit than it is now.
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Hardware profitability is crucial for Sony and Nintendo (Microsoft never sold an Xbox at a profit, and that could be why they’re now merging Xbox consoles with Windows). Right now, Sony is able to produce and sell each PS5 console at a profit, but that may change in the future due to rising storage memory costs.
Diminished hardware profitability will drag the company’s margins and put more stress on software and services. This is something Sony is potentially planning for as it is now focusing on **“monetizing the PS5’s installed base”**rather than expanding that said installed base.
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In a recent Q2 earnings call with investors and analysts, Sony Chief Financial Officer Lin Tao says that Sony has already acquired sufficient NAND chips and components to preserve PS5 hardware profitability through FY25, which ends on March 2026, but future periods aren’t guaranteed.
Below is a transcript of what was said about PS5 profitability in the call:
“In Q2, the major contributing factor to profitability was foreign exchange rates, network and services, a reduction in SG&A, and there was a reduction in M&A, we were able to achieve a relatively high level of profitability. Whether or not this is a sustainable one, that is the question.
“Network services command higher profits than software. Especially with first-party software–if these games perform really well, we should be able to maintain a higher level of profitability.
“With regards to memory prices and the potential impact on hardware profitability, in this fiscal year we have already acquired all of the parts that we need. Now because the market continues to fluctuate, we need to keep a close eye on the market situation. And of course, when the prices of these parts go up, that will have an impact on the profitability of the hardware for next fiscal year and onward.
“We have already achieved 84 million PS5 sales, and assuming this will grow next year, instead of additional hardware profitability, we want to really continue to monetize the installed base that has already secured. I think that will be a priority.”
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Senior Gaming Editor
Derek joined TweakTown in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man’s Sky with the magic of VR.