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PlayStation 5: Sony cuts shipment forecast as global chip shortage persists

PlayStation 5: Sony cuts shipment forecast as global chip shortage persists

PlayStation 5: Sony cuts shipment forecast as global chip shortage persists
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By CNBCTV18.com Feb 3, 2022 6:19:48 PM IST (Updated)

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Despite the holiday season sales, Sony shipped only 3.9 million PS5 consoles in the last three months of 2021, which is marginally higher than the previous quarter figure of 3.3 million.

Faced with an unprecedented global semiconductor chip shortage, Sony Interactive Entertainment is struggling to manufacture enough PlayStation 5 (PS5) consoles to meet the never-ending demand, even a year-and-a-half since launch. Despite strong demand during the holiday season, Sony shipped only 3.9 million PS5 consoles in the last three months of 2021, which is marginally higher than the previous quarter's figure of 3.3 million, The Verge reported.

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Till December 31, the Japanese conglomerate had shipped 17.3 million units of PS5, nearly three million units fewer than the 20.2 million units of the PlayStation 4 shipped during the same period after launch.


In the third quarter of FY21, Sony’s gaming division generated revenue of 813.3 billion yen ($7.09 billion) compared to 883.2 billion yen ($7.703 billion) in the same quarter in FY20.

Operating profit, however, rose 12.1 percent to 92.9 billion yen ($810 million) as Sony sells PS5 at a price lower than the manufacturing cost.

According to the Japanese firm, lower sales are a result of supply chain disruptions and component shortages that have plagued the gaming industry since the beginning of the pandemic.


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As the company expects these issues to continue, it has revised the forecast for PS5 shipments during the fiscal year to 11.5 million from 14.8 million units. By the end of the full year, the gaming revenue is now forecast to be 170 million yen ($1.48 billion) against the earlier forecast of 2.73 trillion yen ($23.8 billion). It has increased operating profit forecast by 6 percent to 345 billion yen ($3 billion).

Despite high demand, PS5 is hard to find on store shelves or e-commerce websites, whereas PS4 was available in abundance during its first year on sale.

Recent reports suggest that Sony plans to continue manufacturing the last-gen PlayStation 4 console throughout 2022 as PS5 shortages show little sign of abating.

Although Sony did not officially announce halting production of the PS4, media reports had suggested that it planned to discontinue assembly at the end of 2021. However, it may now add another million new PS4 units in 2022, reported Techspot.

Not only is PS4 easier to manufacture, it also comes at a lower price than PS5 and uses less advanced chips that are more in supply.

For Sony, PlayStation is the most important individual division as it accounts for over a quarter of the company’s overall revenue.

As the chip shortage is likely to continue through 2022, PS5s may not be any easier to find at least in the first half of the year. Once supply issues are resolved, sales will pick up and buyers will finally get the opportunity to lay their hands on the device. However, it is unclear when supply issues will be resolved.

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