Sony is refocusing its gaming strategy. Instead of continuing to focus on the sale of the PS5, profitability through existing players and active users is now to be prioritized.
What has Sony changed in its strategy? Sony has recently moved away from the goal of selling as many PS5 consoles as possible. According to CFO Lin Tao, the new focus is on monthly active users (MAU, English: Monthly Active Users). This step is intended to increase profitability and stabilize the company in the long term – also considering the competition.
Why is Sony shifting its focus from sales numbers to active users? In an interview with the PlayStation magazine Push Square, Lin Tao clarifies the motivation behind the new approach. “Previously, the emphasis was on selling units, but now we focus on monthly active users (MAU),” she said about the company’s gaming division. “Management is concentrating on engagement and MAU. That leads to profitability.”
This strategic shift does not come as a surprise. As reported by 3DJuegos, Sony experienced a slight decline to 124 million active users in the last quarter, after previously reaching a record of 129 million. Nevertheless, the user base remains noticeably strong and stable. The high user numbers offer Sony potential for monetization through digital sales and subscriptions, unlike one-time hardware sales.
In other words: Monthly Active Users (MAU) are crucial for Sony because they enable direct revenue through purchases in the PS Store, subscriptions like PS Plus, and in-game transactions. The more active the users are, the higher the likelihood that they will spend money within Sony’s ecosystem.
Sony’s approach seems to be paying off
How does the new strategy affect Sony’s finances? Despite or because of the shift in focus, Sony was able to achieve very good financial results. In the last quarter, operating profit rose by 184% compared to the previous year, which was also due to increased profitability of the hardware (due to recent price adjustments) and improved sales of third-party games (via Push Square).
However, there were also challenges for the tech company. Physical sales of games have fallen by 32% compared to the previous year according to the latest business report (via Sony), according to 3DJuegos.
Sony’s strategic realignment from sales figures to active users reflects the shift in the gaming industry that other companies, such as Activision Blizzard, have long been advancing. While PS5 sales remain solid, the focus is now on long-term retention and monetization of the user base. Criticism of this strategy became particularly loud when Sony attempted to link the co-op game Helldivers 2 with a PSN requirement
