PlayStation 5: lack of first-party releases and sales decline

Intelligence Summary
- Explore the current state of PlayStation 5, including declining first-party game sales and longer development times.
Introduction
The PlayStation 5 console generation has been marked by a noticeable drop in the number of first-party game releases. A closer look at first-party sales figures shows a decline since fiscal year 2020, with standout titles such as Ghost of Tsushima and The Last of Us Part II released during that peak.
First-party game sales
In fiscal year 2020, first-party game sales reached a peak of 58.4 million units sold. This included not only the strong performance of PlayStation 4 titles, but also games launched alongside the PS5, such as Marvel’s Spider-Man: Miles Morales and the Demon’s Souls remake.
However, it is important to note that first-party game sales have fallen almost every year since then, with the exception of fiscal year 2025. That year, Sony saw a rebound in first-party sales, driven mainly by the release of open-world sequels such as Death Stranding 2 and Ghost of Yotei, which offset some earlier declines. It was a welcome change after a period of disappointing results.
Evolution of game sales
During the pandemic, overall game sales also rose significantly, peaking at 338 million units sold. However, after that high point, the numbers began to decline, though sales have trended upward again in recent years. Over the past year, nearly 320 million games were sold, close to current record levels.
Game development times
A major factor contributing to the challenges in first-party development is the longer production cycle for new titles. In the past, games could be developed in three to four years; today, even a sequel like Ghost of Yotei can take up to five years. This affects the consistency and frequency of major releases from Sony's internal studios, including Sucker Punch Productions.
Impact on the PlayStation brand
The shift toward live-service gaming has also played a role in slowing development. This move may have led to several failed projects and acquisitions, and aside from a few exceptions such as Helldivers 2, many of the new offerings have not been well received by the public. As a result, Sony appears to be struggling to maintain a clear identity in its first-party PS5 lineup compared with the successful titles of the PlayStation 4 era.
Timeline
2020: First-party game sales peak at 58.4 million units.
2025: First-party game sales rise again after a period of decline, with releases such as Death Stranding 2 and Ghost of Yotei.
2026-06-02: New data reveals the ongoing decline in first-party games and the impact of live-service models on development.
With this context, Sony will need to adapt to changing market conditions, especially with upcoming new releases and the potential next generation of consoles. While fans hope for more consistent high-quality releases, it remains to be seen how Sony will address these challenges in the future.


