We all know that next-gen consoles like the PS5 and Xbox Series X/S are selling at a loss, just as they were before, but Sony and Sony hope to make a profit on hardware at some point in the future. According to the CEO of Sony Interactive Entertainment, the PS5 will soon reach break-even point, turning a profit by June, and the Chinese market is a key opportunity.
Jim Ryan pointed out that factors such as VR and cloud gaming will drive Sony's gaming growth in the future, but most importantly, the PS5 legal channels launch in China in early May has proven to be "absolutely phenomenal."
Jim Ryan added that China, with a population of 1.4 billion, was "a complex and difficult market with regulatory risks" but that "if we get it right, it could be a huge opportunity for Sony and the PlayStation brand."
Jim Ryan previously confirmed that Sony expects the PS5 to beat the PS1, which sold 22.6 million units in FY98, in FY2022. Jim Ryan said Sony wants to "make sure FY2022 is the biggest console year ever," and that ambitious statement comes amid a severe global semiconductor shortage.