PlayStation is benefiting from subscriptions and live services

PlayStation 4 is nearing the end of its life. The next PlayStation is coming soon as Sony Interactive Entertainment has already confirmed. That has led to declining revenue for the company’s gaming division. Only this generation is different than in the past, because the PS4’s revenue decline is just a minor dip. And Sony still expects its game & network services to have one of the best years in its history. And PS4’s resilient revenue is indicative of gaming’s future.

Sony is expecting its gaming division to generate revenue of $20.3 billion (2.2 trillion yen) during its current fiscal year ending March 31, 2020. That’s down from $21.3 billion during its fiscal 2018/19, and it’s also down from its previous forecast for fiscal 2019/20. The company notes that the PlayStation 4 hardware is selling slower than it expected even if it is still selling well. It’s also seeing lower-than-expected revenues from game software.