Sony India Sees Record Growth in Gaming Market with PlayStation 5 Dominance

India’s gaming market is rapidly evolving into a “good opportunity market” for global tech giant Sony, according to Sony India’s Managing Director Sunil Nayyar. Amid this booming landscape, the company has reported “phenomenal growth” in its gaming sector for fiscal year 2024, primarily due to the robust performance of the PlayStation 5 and its software peripherals. This success highlights Sony’s decisive shift towards premiumization and advanced technology offerings, which have appealed to the burgeoning base of Indian gamers.

Nayyar pointed out that Sony India has captured a commanding 95 percent share of the console gaming market, nearly doubling its gaming revenue from FY23 to FY24. While this outstanding growth marks a new chapter, Sony anticipates that growth rates may moderate due to the elevated revenue base.

“The base is very high because we almost achieved double business last year. So this year, we intend to have modest growth, but we are developing the gaming business market in the country, including software development and peripherals,” Nayyar told PTI.

Sony India’s recent annual report shows that revenue from its gaming and B2B business surged by over 50.1 percent, totaling ₹1,363.54 crore. PlayStation 5’s soaring popularity, coupled with a rise in sales of its peripherals, played a crucial role in driving this revenue leap. Nayyar emphasized, “India is now becoming a very good opportunity market for gaming for Sony… We have 95 percent in the market today as far as PS5 is concerned, and we have a very strong brand here for the gaming business.”

Expansion Beyond Gaming: Success in Niche Segments

While Sony’s focus on gaming has redefined its brand presence in India, the company is also thriving in niche markets such as medical equipment and sports technology.

Through its Hawk-Eye system, a technology used in major global sporting events to visually track ball trajectories, Sony has extended its innovative touch to various sports. “We are also growing in various niche segments like medical equipment, where we sell a lot of products such as microdisplays, and even sports, where our Hawk-Eye technology is highly valued,” Nayyar shared.

Sony India’s Strategy of Premiumization Yields Strong Growth

Sony India’s revenue from its Consumer Audio and Visuals segment rose by 15.7 percent in FY24, reaching ₹6,300.20 crore, while overall profits increased by 22.18 percent. This progress has been largely driven by the company’s premiumization strategy—a shift to high-end, technology-rich products across all categories, including television and audio.

“Our growth stems from a strategic move towards premium products,” Nayyar explained. “Rather than focusing on entry-level or lower-price models, our offerings now resonate with customers seeking high-quality, innovative solutions. From OTT content to television setups, India is embracing premium upgrades, and we’re meeting that demand.”

Looking Ahead: Achieving a Milestone Revenue Target

As Sony India looks toward future growth, it aims to reach historic revenue highs. After Sony Corporation withdrew from mobile phones and laptops, the company’s Indian revenue took a temporary dip. However, since FY22, Sony India has stabilized and is now poised to target a revenue milestone of ₹10,000 crore in the coming years. “I cannot peg a time framework, but efforts will be that we should soon become a ₹10,000 crore company,” Nayyar stated, underscoring Sony’s commitment to sustainable growth in India.

While Sony India’s strategy remains focused on premiumization, Nayyar acknowledges that market fluctuations may pose some challenges. “The market is a bit challenging with some ups and downs. Nevertheless, our strategy remains the same: premiumization, innovation, and elevating our customers’ experience through new technology,” he said.

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