Macquarie Research Analyst Damian Thong expects that Sony will release a PS5 in the second half of 2018 , to capitalize on its expanding software sales. Recently the PS4 has seen the release of 3 critically acclaimed titles Nioh, Nier Automata ( Japan Release Only) and Horizon Zero Dawn.
According to Thong he see’s Sony’s profits increase by 13% in 2018 and reach an all time high of JPY 565.6 billion for the fiscal year ending March 2019. He has identified three catalysts which will contribute to these profits and these are :
- Image Sensors
- Gaming And Network Services
- Fewer Write Downs
Sony recently wrote down $1 billion on its pictures division in January.
According to Thong it will be the Gaming and Network Services which will contribute significantly to the profits of Sony come 2018, and that PlayStation 5 will be making an appearance in the second half of 2018. Here is what he had to say:
“We see sustained profit growth in Game & Network Services. We forecast OP growth from ¥140bn in FY3/17 to ¥180bn in FY3/18, driven by expanding software sales and profits. A rising digital ratio and a higher mix of first-party titles will help margins – Horizon Zero Dawn, which launched on 28 Feb, looks to have had a good start with a Metacritic score of 88. While we have tempered expectations to account for rivalry with Microsoft/Xbox and PC gaming, we note that the success of PS VR (which has reached 915K units sold) highlights the health of the ecosystem. We expect Sony to launch a >10 TFLOPS ‘PS5’ in 2H18 to secure the installed base.”
Whats interesting about this time frame is the fact that we are potentially waiting for the release of games like God of War 4 , Days Gone , and The Last Of Us 2. Hence releasing the PS5 during this period does seem like a good move to make . A new console coupled with some great exclusives and the continued improvements in PSVR could ensure that Sony remains at the top of the food chain for a number of years to come.