Sony changes focus of PlayStation to engagement and recurring profit

Sony is promoting a structural change in the strategic focus of the PlayStation division: the exclusive emphasis on console sales is out and the obsession with continuous engagement and profit per active user is in. The most important data for the Japanese company now is the number of MAUs (Monthly Active Users), not the volume of units sold.

The new Chief Financial Officer, Lin Tao, made this clear in his first earnings conference after the recent internal restructuring.

"Sell-in units was the focus, but now we are focused on monthly active users (MAU). Management is focused on engagement and MAU. This is generating profitability."

In the last fiscal quarter, ending in March 2025, Sony reported a total of 124 million monthly active users, a slight decrease from the peak of 129 million recorded during the holiday season, but still a year-over-year growth.

The logic behind the change is evident: games like Fortnite, Roblox, and Genshin Impact keep players connected for months or years, and increase spending through microtransactions and subscriptions. The revenue model now revolves around keeping the player active — to sell PS Plus, premium peripherals, additional content, and licensed products. The console, in this scenario, is just the entry point.

The installed base of the PS5 continues to grow, and according to Tao, many new users are now entering the ecosystem. Interestingly, the executive also noted that the PS4 still represents a considerable part of the active base, contrary to expectations of a mass migration to the new generation.

Regarding games, Tao addressed another sensitive point: the control of spending by first-party studios.

"In the past, there were issues with internal studios, and Totoki-san (former interim CEO) talked about various structural reforms. Compared to a few years ago, financial discipline is implemented, but there is still room for improvement. The main thing is that the mindset has changed significantly."

With this new directive, Sony Interactive Entertainment is also expected to continue investing in multiplatform expansion — including PC releases and adaptations for film and TV, as we have recently seen with The Last of Us, reinforcing the recognition of its IPs beyond the console.

Sony's current strategy is paying off: the PlayStation division recorded the highest profits in its history. Nevertheless, the search for growth shows no signs of slowing down. With changes in leadership, such as the promotion of Hideaki Nishino to division CEO and the entry of Lin Tao as CFO, the company is now betting on a leaner, more profitable operation focused on user retention.