Sony's profit nosedive could mean you can finally get a PS5

Date:
Tue, 10 May 2022 15:38:56 +0000

Description:
One business analyst expects Sony will up its PS5 production in a bid to
shore up its falling profits.

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PS5 stock shortages may soon be a thing of the past, as Sony looks likely to increase production of its flagship console in a bid to shore up its falling profits.

Thats according to one business analyst, who reckons Sony will be keen to
fill persistent PS5 demand gaps after the company reported its earnings didnt meet industry expectations. By upping production of the console, Sony can reach those consumers who have been clamoring for the console since it launched.

We expect Sony to accelerate the PlayStation 5s production volume in this fiscal year to recapture the ground, Macquarie Capital Securities analyst Damian Thong told Bloomberg , though at the cost of pressure on profit margins. (Image credit: Sony) What does this mean for you?

Thats good news for anyone struggling to get their hands on a PS5. The
ongoing global chip shortage has meant Sony's produced fewer units of the console than it had anticipated. Thats led to stock shortages that have made it decidedly difficult to snap up the console in retail stores.

If Sony commits to upping PS5 production, we should see more hardware hitting shelves. It'll not only ease those shortages, but also undermine unscrupulous scalpers who buy the consoles in bulk to sell at inflated prices.

As Thong mentions, Sony might have to incur higher-than-usual production
costs to rapidly expand manufacturing, but thats unlikely to have a knock-on effect on consumers. The PS5 is usually sold at a loss , with Sony making up the shortfall through its first-party games, hardware peripherals, and subscription services, like PS Plus .

Both the PS5 and Xbox Series X have been beset with persistent stock shortages. Sony's console has sold cool 19 million units, as laid out in the company's FY2021 fiscal results . That's figure has surpassed the Xbox Series Xs 12 million units sold. The PS5's sales have even set a couple of records, too, such as overtaking the UK lifetime sales of the Nintendo 64 .

The Xbox Series X has been easier to find in recent months after Microsoft made a concerted effort to prioritize chip production last April. The fruits of that investment have now started to appear, as the flagship console is easier to source than the PS5.

If Sony wants to maintain its sales lead on Microsoft, itll need to seriously ramp up production. Seeing more hardware on retail shelves will be good news to Sonys shareholders, as well as consumers who are eager to finally get
their hands on the next-gen console. Find where to buy a PS5 with our up-to-date restock guide



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Link to news story: https://www.techradar.com/news/sonys-profit-nosedive-could-mean-you-can-finall y-get-a-ps5/


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