In a nutshell: Sony's holiday quarter turned out better than Wall Street expected, and the PlayStation 5 was a big reason why. In its earnings release for the three months ending December 31, 2025, Sony reported 8 million PS5 units sold-in (shipped into retail channels), alongside 97.2 million combined PS4/PS5 full game software units.
That 8 million figure matters because it puts PS5 ahead of Nintendo's brand-new Switch 2 in the same calendar quarter. Nintendo's latest investor presentation shows Switch 2 hardware sell-in of 7.01 million units for its fiscal Q3 (Oct – Dec 2025). In other words: Sony's five-year-old console still managed to edge out Nintendo's shiny new one during the most important shopping season of the year.
Sony's Games & Network Services business keeps finding ways to print money even when hardware growth cools. Monthly active users on PlayStation Network hit 132 million at the end of the quarter, according to Sony. And while hardware shipments weren't up year-over-year, software volume was, which is where margins tend to look healthier.
Sony added that Ghost of Yotei exceeded sales of its predecessor during the same period, and "significantly" contributed to its results. Helldivers 2 and MLB The Show also made notable contributions.
So, what changed this holiday season? Pricing, for one. Sony leaned hard into promotions across major regions, pushing the PS5 digital edition to aggressive holiday price points in some markets, which likely helped keep the console moving while the Switch 2 faced the usual "new product, premium price" reality. Nintendo itself has acknowledged a tougher economic environment and higher pricing pressure in multiple markets.
Analysts have also pointed to the PS5's late-year slate and ecosystem momentum as key advantages. Sony's own data shows the digital full-game ratio climbed to 76% in the quarter (PS4/PS5 combined), reinforcing the shift toward higher-margin software and services.
Sony's confidence showed up in its outlook as well. Bloomberg reports the company posted a surprise profit improvement for the holiday quarter and raised its full-year forecast off the back of stronger performance. Meanwhile, the PS5 has now reached 92.2 million lifetime sales, putting it between the Wii (101.6 million) and the PlayStation 3 (87.4 million). The PlayStation 4 is fifth on the list with 117.2 million sales.