Sony is, allegedly, choosing to reduce its supply of the PS5 for FY 2022 as component insufficiency and logistics become pressing issue. Word about the business decision came from anonymous people with familiarity to the company’s business operations.
As per Bloomberg, Sony “had previously targeted more than 16 million units assembled in the year ending March”. This target in production was met and gave the PS5 maker a “head start for next year’s production”. However, with supply concerns rooting in the pandemic remains unwavering, the company is said to have cut its target by one million. Despite this, prospect states that meeting even 14.8 million units by March 2022 would prove to be a conundrum.
Sony exec speaks
Just late last month, during a conference call with investors, CFO Hiroki Totoki claimed how the factors affecting production became “more severe” for Sony. But nowhere is this notion truer than how the PS5 performed in the duration that ended last September. In comparison to its older sibling, the PS4, the next-gen console showed sales that are “significantly weaker than expectations”. At around the same time of disclosure, the Sony exec warns that any aggravation brought by COVID-19 could negatively influence supply.
Despite the constraints due to the pandemic, the PS5 was doing relatively well in the market. Aside from the great demand that sold it like pancake, it’s the first console to break Nintendo Switch’s best-selling streak in three years. By July 2021, since its launch, the next-gen console has reportedly sold 10 million units—the fastest among Sony’s console offerings. Only for it to become sluggish following PS4’s rapid sales, highlighting the high demand for entertainment amid a global crisis.
Global supply problem
Sony have not been the only player in the industry that was vocal about the shortage, however. Many companies in the electronic space share the same plight as well, as resonated by their statements over the same matter. From Toshiba Corp. to Taiwan Semiconductors Manufacturing Co., these entities are themselves at the forefront of the scarcity sentiments. In fact, more so than any other elements in the business as they play a critical role as suppliers in it.
Although the issue of reduced supply might seem like a problem over potential sales, there’s more to the predicament. As frustrations grow over consumers’ inability to get a hand on PS5, some PlayStation fans have taken a shift towards PC gaming. Which, while itself also affected by the situation, is nonetheless a more accessible platform still in the grand scheme of things.
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