Have you scored a PS5 yet? In case you haven’t, there’s a good chance you’ll be able to walk into a store and buy one soon.
According to Reuters, Sony reported in its profit forecast that it produced more than 6.5 million units of its next-generation video game console during the second quarter of this year ahead of the typically busy year-end shopping season.
The PS5 has been in short supply since it launched in November 2020 due to the high demand for home entertainment during the COVID-19 pandemic and supply chain disruptions from the semiconductor shortage. Until today, a lot of consumers are still hard-pressed to find units at retail. But that could soon change as supply chain snags have supposedly since eased.
"PS5 production constraints have eased, and we believe (the) game segment's operating leverage is likely to drive upside from next (quarter)," wrote Jefferies analyst Atul Goyal.
Sony wants to sell more than 18 million PS5 units this year, said Chief Financial Officer Hiroki Totoki. The report comes just a couple of days after the company announced that the PS5 has crossed 25 million in total lifetime sales. In line with this, the value of inventory at Sony's PlayStation unit surged to 412.5 billion yen (US$2.79 billion) in the second quarter compared to 146.2 billion yen three months earlier.
While there could soon be a steady supply of PS5 units, it's still uncertain whether demand remains the same, considering the global surge in inflation. The Japanese electronics giant sold 3.3 million PS5 units over the last three months, which is the same as last year, suggesting that there hasn't been any growth. Then again, the figure comes amid the price of the PS5 hiking in a number of markets.
Perhaps what's more concerning is that software sales were down by 18% from the same time last year, though this can be attributed to a relatively slow period in game releases. Still, the figure doesn't inspire much confidence from investors.
"Players are cutting the number of titles they buy on the back of global macroeconomic conditions," Totoki told Bloomberg. He said that not only did Sony not have any new games to sell, but even old ones weren't performing as well as the company expected.
"My biggest apology is that we had to cut our outlook on games for two straight quarters," added Totoki.
Sony in its profit forecast reported that it produced more than 6.5 million units of its next-generation video game console during the second quarter of this year, suggesting supply chain snags have since eased.
The PS5 has been in short supply since it launched in November 2020 due to the high demand for home entertainment during the COVID-19 pandemic and supply chain disruptions from the semiconductor shortage.
The Japanese electronics giant wants to sell 18 million units this year.