PS5’s Profit Margin Problems Are a Thing of the Past as Division Tops $1 Billion Operating Income for Q1 2025

In every conceivable measure, the PlayStation business is absolutely thriving.

While there’s been a huge amount of chatter about the trajectory of consoles in 2025, Sony’s latest financial report paints a completely different picture.

Over the last few years, one criticism that’s been levelled at the PlayStation business is its razor thin margins. But in the three month period ending 30th June, the division generated operating income of ¥148 billion (~$1.04 billion).

That’s an increase of 127% year-over-year, and it’s considerably more than the profits it generated during the same period in 2020, at the peak of the pandemic.

In fact, every metric of this latest financial report is up compared to the same period in 2024: hardware sales increased 4.1%, from 2.4 million units to 2.5 million units; software sales jumped by 23%, from 53.6 million units to 65.9 million units; monthly active users grew by 6%, from 116 million users to 123 million users.

What can we learn from this? Well, when it comes to PlayStation, the brand is stronger and more profitable than it’s ever been.

A big part of its massive operating income increase is that it’s finally paid off its ~$3.7 billion acquisition of Bungie, which had been an anchor on its performance over the past few years.

As reported earlier today, the PS5’s install base now sits at over 80 million units, and it will surely surpass 100 million units within the next couple of years.

More importantly, Sony is seeing more people engage with its consoles than ever before. This is the most important metric for PlayStation right now, because it’s through that active userbase that it’s making the bulk of its money. Digital purchases increased to 83% in Q1 2025.

Of course, this colossal success must be viewed through a critical lens, as it does make the various layoffs and closures which have struck PS Studios recently even less palatable than they already were. Prices have continued to rise around the world, too.

But when you see financial results like this, it’s difficult to really argue against anything PlayStation’s doing. It’s more successful than it’s ever been.