adminPlayStation Q1 sales were nearly unchanged year over year, while Sony reported stronger operating income for its Games & Network Services (G&NS) business. The company also responded to criticism of its plan to stop producing physical discs for new PlayStation games from January 2028, saying it will proceed cautiously and continue listening to players.
PlayStation Q1 sales and Sony’s financial results
For the three months ended June 30, 2026, Sony’s overall sales income reached ¥2.83 trillion ($17.6 billion), an 8% increase from the same period a year earlier. Operating income rose 40% to ¥476.4 billion ($2.9 billion). US tariff refunds were the main contributor to the increase in operating income, while higher costs for next-generation platforms and restructuring weighed on earnings.
Within G&NS, sales income was ¥937.1 billion ($5.8 billion), up 0.6% year over year. Operating income increased 37% to ¥202 billion ($1.2 billion). These figures show that higher profitability did not come with comparable growth in segment sales.
Game sales, hardware and player activity
Lower sales of non-first-party games and hardware were the main factors behind the segment’s almost unchanged revenue. First-party game sales fell from 6.9 million units to 6 million. Non-first-party software sales edged up from 65.9 million to 66.1 million units.
Total software sales were ¥526.6 billion ($3.2 billion). Digital software and add-on content accounted for ¥485.2 billion ($3 billion), while physical software sales were ¥20.5 billion ($128 million). These figures underline the scale of digital sales, although physical games still generated revenue during the quarter.
Network services revenue grew 21% to ¥172.6 billion ($1 billion). Monthly active users reached 125 million in June, a record for that month and 2% higher year over year. Total playtime declined 4%, but Sony described engagement as solid, citing seasonal updates to major games and the performance of new hit titles.
Hardware sales were ¥222 billion ($1.3 billion), down 10.4%. PlayStation 5 sales declined from 2.5 million units to 1.6 million. When comparing hardware performance, it is useful to look at both unit sales and revenue: the company reported declines in each of these measures for the quarter.
Sony’s plans for physical PlayStation discs
CFO Lin Tao said Sony had considered several factors before deciding to halt physical disc production for new PlayStation games beginning in January 2028. She identified the wider shift toward digital content as a central reason, noting that the trend extends beyond PlayStation to other forms of entertainment.
Tao acknowledged that players have expressed strong feelings about the change and that games are connected to important memories for many people. Sony intends to keep considering that feedback and explore how it can engage players within a future digital ecosystem. The company has said it will move ahead carefully rather than dismissing community concerns.
Updated outlook and memory supply
Sony raised its G&NS sales forecast to ¥4.5 trillion ($28.1 billion), from ¥4.4 trillion ($27.4 billion). Its operating income forecast also increased, to ¥660 billion ($4.1 billion) from ¥600 billion ($3.7 billion).
The company added that it had secured enough memory to support its projected hardware sales volume for FY26. It expects hardware profitability in FY26 to remain similar to FY25. This update offers context on production planning amid the ongoing memory shortage, but does not change the company’s stated profitability plan.
What the PlayStation Q1 sales report shows
PlayStation Q1 sales remained broadly level as software and network activity helped offset weaker hardware and first-party game unit sales. Sony reported improved G&NS operating income, raised its full-year segment forecasts and reiterated that it plans to approach the proposed shift away from physical disc production with care. Players following the change can watch for further details about Sony’s digital ecosystem plans and how it responds to community feedback.
