PlayStation 5 sales are hot, but Sony’s profit powerhouse is services

PlayStation 5 is on a record pace in terms of hardware shipments for Sony. And while those sales reveal raw demand for consoles, Sony Interactive Entertainment is stronger than ever thanks more to its digital services. The company reported 2,656 billion yen ($25.03 billion) in revenue from its Game & Network Services segment for the fiscal year ending March 31. That is a record, according to industry analyst Daniel Ahmad. More importantly, it reveals a strong engine for consumer spending even as Sony transitions between hardware generations.

PS5 sales are fueling Sony’s revenue growth, but Game & Network Services generated a record 342.2 billion yen ($3.22 billion) in operating profits thanks to other factors.