Looks like I won’t be getting a PlayStation 5 in two years!
Sony is expecting a massive supply issue for their most loved PlayStation series. Its demand appears to be higher than any other PlayStation series before.
We have already seen supply issues of semiconductor chips that result in shortages in various departments of technology like smartphones, automobiles, computer manufacturers, and many more. You name it! The global pandemic has affected almost every industry when it comes to technology.
Sony Group Corp. has also warned a group of analysts about their PlayStation 5 console supply-demand issue. It is expected to remain in short supply through 2022.
Just like others, Sony doesn’t expect PlayStation 5 supply issues to resolve soon. Following the company’s recent earnings report in late April, the Japanese conglomerate said it had sold 7.8 million units of the console through March 31, and it is aiming to sell at least 14.8 million units in the current fiscal year.
Sony’s Chief Financial Officer Hiroki Totoki said it’s difficult for Sony to keep up with the demand for the PS5, and that the situation is likely to continue into 2022.
“I don’t think demand is calming down this year and even if we secure a lot more devices and produce many more units of the PlayStation 5 next year, our supply wouldn’t be able to catch up with demand,”
“We have sold more than 100 million units of the PlayStation 4 and considering our market share and reputation, I can’t imagine demand dropping easily.”Hiroki Totoki – Sony’s Chief Financial Officer
Tokoki told analysts that Sony needs to ramp their production as soon as possible to make sure their consoles remain available on every store’s shelves. Following the current situation, demand will always remain high due to this global pandemic.
“We have sold more than 100 million units of the PlayStation 4 and considering our market share and reputation, I can’t imagine demand dropping easily,”Hiroki Totoki – Sony’s Chief Financial Officer
However, Sony’s CFO further assured an analyst about Sony’s ability to fully capitalize on the stay-at-home entertainment surge triggered by lockdowns and emergency orders.
Talking about shares. Sony said it would buy back up to 200 billion yen ($1.8 billion) of its own shares after reporting profit for the March quarter that fell short of analyst estimates. It forecast that operating profit would slide about 4% in the current fiscal year.
Shares have dropped about 8% since the earnings report on April 28, after rising 75% over the previous year.
Sony’s CFO said monthly active users on PlayStation Network fell to 109 million at the end of the January-March period from 114 million a quarter earlier and sales of full games also declined in the period from a year earlier.
President and CEO of Sony Interactive Entertainment told the Financial Times in February.
“The pace of the improvement in the supply chain will gather throughout the course of the year, so by the time we get to the second half of 2021, you’re going to be seeing really decent numbers indeed.”Jim Ryan President, and CEO of Sony Interactive Entertainment
However, Sony and Tokoki don’t expect the company to be able to meet demand in the near terms even if production capacity increases. This sums up the situation looks less optimistic for Sony in coming years.
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