Sony has lowered its PlayStation 5 sales forecast for fiscal 2023 significantly and now expects to sell 21 million units, down from a previous forecast of 25 million. That’s despite posting record quarterly revenue and selling 8.2 million PS5s over the holiday season. So far this fiscal year, Sony has sold 16.4 million consoles, bringing its total to 54.8 million overall. (The company sold 19.1 million PS5s in fiscal 2022.)

Sony announced in December that it had sold 50 million PS5 units over three years, as of December 9, 2023. That’s just a week longer than it took the PS4 to achieve the same number, and the latter wasn’t bogged down by supply chain issues and a worldwide pandemic.

Revenue was up 16 percent over the same quarter last year, thanks in part to improved sales of non-first-party titles. However, operating income was down significantly (26 percent), due a drop in first-party sales and losses on hardware due to promotions. In other words, PS5 sales aren’t meeting the company’s expectations despite discounts.

Sony has seen higher sales in all three quarters this year compared to last. That might not continue this year though, as it’s forecasting sales of just 4.6 million for Q4 2023 (February to April), down from 6.3 million in Q4 2022.

In terms of new first-part games, Sony noted that Marvel’s Spider-Man 2 has sold 10 million units (as of February 4) since its release in October 2023.

Almost all other Sony divisions saw higher revenue, including its Imaging & Sensor Solutions division (Sony makes sensors for iPhones and many other devices), along with Pictures and Music. That resulted in a record 3.75 trillion yen for Q3 ($24.9 billion) compared to 3.08 trillion yen the year before ($20.5 billion).