Sony’s PlayStation 5 Scarcity is not Ending Soon

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In its latest earnings report, Sony revealed it was able to ship 3.9 million units of the PlayStation 5 consoles in its key holiday quarter. The previous quarter saw Sony ship 3.3 million units of the console but Sony is still struggling to keep up with the demands of its next-gen console despite improvement in shipment. Since its launch, the company has been able to ship a total of 17.3 million units of the console which is nearly 3 million units shorter than the 20.2 million units the company shipped for its PlayStation 4 in the same timeframe of its life cycle.

The PS5 shortage meant Sony reported an 8 percent decrease in revenue year over year in its gaming division at 813.3 billion yen ($7.09 billion), but its operating profit rose 12.1 percent to 92.9 billion yen ($810 million). The supply chain scarcity seems to have at least helped with the increase in operating profit since the company loses money producing PS5 consoles. Sony reportedly plans to make more PS4 consoles to offset the shortage in PS5 consoles.

Due to the ongoing global semiconductor scarcity, Sony expects the PS5 shortage to continue through the year. The company has now lowered its shipments forecast for the PS5 this fiscal year to 11.5 million units, down from 14.8 million. Full-year revenue estimate for its Game & Network Services (G&NS) division has also been decreased by 170 million yen ($1.48 billion). Despite the supply constraints, the company expects a 6 percent increase in profit due to not incurring costs from not being able to meet demands.

Sony’s image sensor division fared well with a 22 percent increase in profit year over year to 57.8 billion (~$504 million), largely in part due to the sales of its premium image sensors for smartphone cameras. The company’s movie division saw a huge growth in revenue to $4.02 billion as well with Spider-Man: No Way Home closing in on Avatar’s box office record.

Posted by Abiodun

Passionate about Technology and everything concerning it. Avid Gamer and Music Lover. Loves Chelsea FC. Overall, a nice guy.

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