Sony has reported a significant decline in PlayStation 5 (PS5) sales, with only 1.5 million units sold in the fourth fiscal quarter, representing a 46% drop from the previous year. This downturn is attributed to ongoing memory shortages that have forced the company to increase PS5 prices twice within a year, with the current price set at $650, up $150 from last year. Despite this decline, Sony's gaming division managed to achieve a slight revenue increase for fiscal 2025, totaling 4.69 trillion yen (approximately $29.9 billion), compared to 4.67 trillion yen (around $29.8 billion) in the previous year. Operating income also rose by 12% to 463.3 billion yen (approximately $2.95 billion), partly due to higher sales from the PlayStation Network. Looking ahead, Sony forecasts a 6% revenue drop for the upcoming fiscal year but anticipates a 30% increase in profits, driven by the expected launch of blockbuster titles like Grand Theft Auto VI in November. However, the company's ability to meet these projections hinges on securing adequate memory supplies at reasonable prices. Sony has noted that it has secured the minimum memory needed for the 2026 holiday season, although the rising costs may deter potential buyers.