Holiday-quarter decline offset by strong comparisons and software growth
Summary
– PS5 sold 8 million units in the holiday quarter, down year-on-year
– Console still tracks closely with PS4 and outsold Nintendo Switch 2
– Software, services, and engagement hit record levels for PlayStation
PlayStation 5 hardware sales declined during the 2025 holiday quarter, but Sony remains in a strong position relative to long-term benchmarks. The console continues to track closely with the PlayStation 4 at the same stage of its lifecycle while outperforming key competitors during the period.
Sony reported selling 8 million PS5 units in the three months ending December 31, 2025. That figure represents a decline from the 9.5 million units sold during the same quarter in 2024. The drop comes amid higher console prices, ongoing global economic pressure, and the system entering the later stage of its lifecycle.
Despite the decline, the PS5 still outperformed the Nintendo Switch 2 during the quarter. Nintendo confirmed approximately 7 million Switch 2 units sold over the same period, putting PS5 ahead by roughly 1 million units, even as a five-year-old platform.
Total lifetime PS5 sales have now reached 92.2 million units worldwide. That places the console slightly behind the PS4, which had sold 94.4 million units at the same point in its lifespan. However, Sony executives expect upcoming releases to help close that gap, including the anticipated launch of Grand Theft Auto 6 later this year.
The PS5 has also surpassed the PlayStation 3 in lifetime sales, overtaking the PS3’s total of 87.4 million units. While it remains behind the PS4’s all-time figure of 117 million units, Sony believes sustained engagement and major software releases could extend the PS5 lifecycle and improve its long-term performance.
Sony highlighted strong software and services revenue as key factors offsetting the hardware slowdown. Titles such as Ghost of Yotei made a significant contribution during the quarter, alongside continued performance from Helldivers 2 and MLB The Show. PlayStation Plus revenue also increased as more users upgraded to higher subscription tiers.
Financially, Sony reported a 4 percent year-on-year decline in hardware-led sales for the quarter but a 19 percent increase in operating income. The company also set records for monthly active users, reaching 132 million accounts, with total play time increasing modestly year-on-year.
Looking ahead, Sony indicated it does not expect further PS5 price increases in the near term despite rising memory costs driven by the AI sector. The company plans to focus on maximizing revenue from its existing install base rather than aggressively pushing new hardware sales.
Sony also reaffirmed confidence in upcoming releases, including Bungie’s Marathon, along with future titles such as Saros and Marvel’s Wolverine. Analysts believe this strategy could extend the PS5 lifecycle, potentially delaying the launch of a next-generation PlayStation beyond 2028.
