PS4 is Entering the End of its Life Cycle

In the mid-term report, Sony CEO Kenichiro Yoshida laid out the company’s expectations for the PS4, and the overall Game & Network Services division from now until March 31, 2021. During this time, services and software are expected to drive revenue, not hardware sales.

The company says PSN currently generates annual sales of one trillion yen with 80 million monthly active users, and that PS Plus paid subscriptions have been growing from year to year – sitting at 34.2 million at the end of fiscal year 2017.

PS4 sales, which sit at 79 million units as of March 31st, are declining this  year slightly, but still put the console on pace to surpass the PS3’s 83 million units sold. Sony Interactive Entertainment CEO John Kodera said that gamers can expect more new IPs as well as “franchising successful IPs and refreshing existing IPs,” according to Wall Street Journal reporter Takashi Mochizuki.

Kodera has also stated that the next PlayStation is at least three years away.

“We will use the next three years to prepare the next step, to crouch down so that we can jump higher in the future,” Kodera said, as reported by the Wall Street Journal.

Kodera has also indicated that subscriptions and online services will play an even bigger role in whatever console comes after the PS4.

“We need to depart from the traditional way of looking at the console life cycle,” Kodera explained. “We’re no longer in a time when you can think just about the console or just about the network like they’re two different things.”

These statements provide an interesting look at how Sony sees the console market and how its changing. Services could prove to be more important than the hardware, but in the end what is a service without the hardware to run it?

Keep your eyes on Mammoth Gamers for further developments.

Danny Santos is a journalist at Mammoth Gamers. He enjoys games, comics, and tons of coffee. Last seen: Entering the underground Smash Ultimate Fight Club with a Gamecube controller.