Speaking in the company's Q3 FY2018 earnings call, Sony's CFO Kiroki Totoki discussed the main risks their gaming platform faces in the next five years, where he said that games going to the cloud is just one of the things they're wary of.
Asked to comment on "their competitor's" focus on cloud gaming, Totoki said that's one of the things the company is looking at, at least as far as risks go.
Totoki said that the expansion of open-platform free-to-play games also "could be a threat" for Sony's business, referring to the cross-play floodgates Sweeney and Co lifted last year with Fortnite.
"For example, take an extreme example, people not using hardware. Hardware will become unnecessary, some would argue. But at this point, I think that it would take much longer for games going to the cloud", Totoki said.
He also mentioned how some of their competitors will increase their pricing over this, whereas Sony are thankfully on the green. In his words, even third-party studios recognise that Sony offers the most immersive platform of all, so they're not quitting on hardware anytime soon.
As far as the financial part of the call goes, Sony's gaming division has apparently done well, even if it wasn't enough to compensate for the losses on the hardware side.
PlayStation 4 sales are slowing and the console's age is showing, which is why Sony went for the jugular and aggressively expanded their user base. Whilst this required weathering a few losses at the moment, Totoki expects it to pay off in the long run,
The company flogged 8.1 million PS4 units in the third quarter, which "which was lower than the same quarter last year, but in line with [Sony's] expectation for the sixth year of the platform".
Earlier financial reports by both Sony and Microsoft showed just how large a chunk of their profits come from subscription services and Sony are still growing. " Play Station Plus subscribers increased 4.8 million year-on-year to 36.3 million and software sales increased significantly year-on-year,"