The PlayStation 4 is reaching the end phase of its life cycle, at least according to comments from PlayStation CEO, John Kodera. This is not necessarily saying that a next generation console is already on the way, but rather that the company will be shifting its focus from selling hardware to other revenue streams over the next couple of years.
Sony has been doing very well with the PlayStation 4, having closed in on the 80 million units sold mark some three years faster than it did with the PS3. On the other hand, the end phase also means that the company is predicting reduced profits for the next fiscal year; owing to an expected reduction in the number of consoles sold.
Instead, there will be a renewed focus on services like PSN and selling more first party games.
In other words, Sony understands that there are only so many people left that don’t own a PS4; and will instead be shifting marketing efforts to those who already own the console. We’re likely to see an expansion of its own game franchises to meet this target as well.
Considering the rave reviews that PlayStation has been receiving for God of War, The Last of Us, and Horizon Zero Dawn this is probably not a bad thing.