But both companies report lower worldwide sales with rise of smartphones

Sony Computer Entertainment reported the highest worldwide sales of game systems (home consoles and portable systems combined) in the industry for the fiscal year ending in March 2014. It topped Nintendo for the first time in eight years. However, both companies reported lower game system sales compared to the previous year, in part due to the spread of smartphones.

For the fiscal year ending in March 2014, Sony Computer Entertainment reported 18.7 million game systems (including PlayStation 4 and PS Vita) sold worldwide. However, that represents a 20% drop compared to the previous year. The PlayStation 4 launched in the United States and other countries last November, and it sold almost 7 million systems worldwide by March.

Nintendo reported 16.31 million game systems sold, a 31% drop compared to the year before. The Nintendo 3DS fell in sales, and the new Wii U underperformed. Microsoft reported 11.6 million game systems sold, a 16% increase. Microsoft launched the Xbox One in November in the United States and other countries.

Sony had not been the industry leader in game system sales since the fiscal year ending in March 2006. Shortly thereafter, PlayStation 3 sales fell below expectations, while the Nintendo Wii and DS gave Sony stiff competition.

The financial news service Nikkei projects that Sony will maintain its top position in the current fiscal year ending in March 2015, thanks to continuing PlayStation 4 sales and slumping Nintendo sales.

Source: Nikkei via Hachima Kikō