Hiroki Totoki, former COO of PlayStation, took over from Jim Ryan last fall, when the former President of Sony Interactive Entertainment left his role. And in these few months, Totoki has understood something important about the PlayStation business.
Speaking to shareholders, Totoki admits to having identified one of Sony’s problems with this business: “It’s been a few months since I took over as President of Sony Interactive Entertainment and a big problem I’ve noticed is that there isn’t a complete understanding of how the work of this division can translate into growth, generate sustainable profits and achieve higher profit margins.”
It is no coincidence that PlayStation recorded record profits but minimal revenues in the last quarter, supporting Totoki’s thesis, which for decades deals with the financial division of Sony Corporation.
The interim CEO of PlayStation then underlines how there are no price cuts in sight for PlayStation 5: PS5 is selling less than PS4 in the same period of time but the gap between the two platforms is narrowing and to date 54.8 million PlayStation 5 consoles have been distributed worldwide while PS5 sales forecasts for the fiscal year are were cut by four million units.