The Sony Group has warned a group of analysts that the PlayStation 5 will be in short supply by 2022, suggesting the company has limited ability to meet sales targets for its latest game console. sold 7.8 million units of the console as of March 31 and is aiming to sell at least 14.8 million units during the current fiscal year, which is in line with the evolution of the popular PlayStation 4, which was oversold in a briefing after those results,
Sony said the Analysts said it was a challenge to keep up with the strong demand. The PS5 has been hard to find in stock since it was launched in November, partly due to a shortage of components like semiconductors, and the company hasn’t made an official estimate of when demand won’t settle this year and even if we do the next If we insure many more devices and produce many more PlayStation 5 devices every year, our supply could not keep up with demand, ”said CFO Hiroki Totoki at the briefing because it was not open to the public.
.Sony said it would buy back JPY 200 billion (approximately Rs 13,490) of its own shares after reporting gains for the March quarter that fell short of analysts’ estimates. Year, but analysts weighed whether the company could overcome the conservative outlook with the help of strong demand for the new console and games. Shares have fallen roughly 8 percent since the April 28 earnings report, after rising 75 percent year over year.
Totoki told analysts that Sony needs to ramp up production as soon as possible and make sure consoles are on store shelves. Demand will remain high regardless of the COVID-19 situation, the CFO assured an analyst who is clear about Sony’s ability to fully capitalize. the rise in home entertainment triggered by closings and emergency orders. “We’ve sold more than 100 million PlayStation 4 units and given our market share and reputation,
I can’t see demand dropping slightly,” he said. However, the company’s latest earnings report suggests that homestay demand is stabilizing. According to Sony, monthly active users on the PlayStation Network fell from 114 million in the previous quarter to 109 million in late January to March, and sales of full games also fell in the same period last year. Rival Nintendo warned last week that the lack of components could affect production. The official goal is to sell 25.5 million consoles in the year through March 2022, slightly fewer than last year. Internally, however, the Nintendos management should aim for production between 28 and 29 million consoles, as reported by Bloomberg News. normalize.