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[3liteDragon]

Sony Warns Tight PlayStation 5 Supply to Extend Into Next Year

Sony Group Corp. warned a group of analysts the PlayStation 5 will remain in short supply through 2022, suggesting the company will be constrained in its ability to boost sales targets for its latest games console.

www.bloomberg.com

Sony Group Corp. warned a group of analysts the PlayStation 5 will remain in short supply through 2022, suggesting the company will be constrained in its ability to boost sales targets for its latest games console. While reporting financial results in late April, the Japanese conglomerate said it had sold 7.8 million units of the console through March 31, and it is aiming to sell at least 14.8 million units in the current fiscal year. That would keep it on pace to match the trajectory of the popular PlayStation 4, which has sold in excess of 115.9 million units to date.

In a briefing after those results, Sony told analysts it is challenging to keep up with strong demand. The PS5 has been difficult to find in stock since its release in November, in part because of shortages in components such as semiconductors, and the company hasn’t given an official estimate for when it expects supply to normalize.

“I don’t think demand is calming down this year and even if we secure a lot more devices and produce many more units of the PlayStation 5 next year, our supply wouldn’t be able to catch up with demand,” Chief Financial Officer Hiroki Totoki said at the briefing, according to several people who attended and asked not to be named as it wasn’t public.

A Sony spokesman declined to comment.

Sony said it would buy back up to 200 billion yen ($1.8 billion) of its own shares after reporting profit for the March quarter that fell short of analyst estimates. It forecast that operating profit would slide about 4% in the current fiscal year, but analysts have been weighing whether the company could exceed the conservative outlook with the help of strong demand for the new console and games.

Shares have dropped about 8% since the earnings report on April 28, after rising 75% over the previous year.

Totoki told analysts that Sony needs to ramp up production as soon as possible and make sure there are consoles on store shelves. Demand will remain high regardless of the Covid-19 situation, the CFO assured an analyst wary about Sony’s ability to fully capitalize on the stay-at-home entertainment surge triggered by lockdowns and emergency orders.“We have sold more than 100 million units of the PlayStation 4 and considering our market share and reputation, I can’t imagine demand dropping easily,” he said.

Still, the company’s latest earnings report suggests that stay-at-home demand is leveling off. Sony said monthly active users on PlayStation Network fell to 109 million at the end of the January-March period from 114 million a quarter earlier and sales of full games also declined in the period from a year earlier. Rival Nintendo Co. warned last week that component shortages could affect production. It’s officially targeting sales of 25.5 million consoles in the year ending March 2022, down slightly from the previous year. But internally, Nintendo’s management is said to be shooting for production of between 28 and 29 million consoles., Bloomberg News has reported.

 

[Fahdis]

Well... isn't that a surprise *looks at own avatar*

 

[MayauMiao]

Eh, its not like there is any must play game on PS5 anyway.

 

[modiz]

Eh, its not like there is any must play game on PS5 anyway.

Yep. And not only that, many games will be cross-gen for quite some time so I would wait until they improve the system. VRR, proper save states like quick resume, a non-crashing OS, expandable user-storage, copy saves to USB, working rest mode to only mention a few.

 

[THEAP99]

Well, I guess I am glad I got one when I could. Don't think I could have spent another year with the jet engine ps4 pro

 

[Pallas]

Not surprising, the chip shortage is to be expected to continue onto 2022 and maybe longer.

 

[HerjansEagleFeeder]

The rest of the world needs to become more independent of Chinese (and Taiwanese, while we're at it) companies again.

 

[chilleverest]

By the time its readily available, the redesign will be out...and by the time redesign is out, a pro version will be on the horizon...and the pro version will have the same inventory issue, and by the time a pro version is out, ps6 will be not too far away...and by the time ps6 is out, all ps5 exclusives will be available on pc.

 

[Barakov]

Whatever. I think it's more likely I'll just get a new PC at this point. Honestly, retailers should be just taking pre-orders and ship them out once they have the stock to do so.

 

[TLZ]

Well, I guess I am glad I got one when I could. Don't think I could have spent another year with the jet engine ps4 pro

Same here.

 

[killatopak]

My decision to skip the base model and go straight to pro/slim seems to be a better decision by the day.

 

[Yselacrey00]

Well, I guess I am glad I got one when I could. Don't think I could have spent another year with the jet engine ps4 pro

After reading rumours about a possible refresh next year I'm not happy at all.

 

[Grimchest]

Whatever. I think it's more likely I'll just get a new PC at this point. Honestly, retailers should be just taking pre-orders and ship them out once they have the stock to do so.

Seriously why haven’t they done that yet? It’s so simple.
I don’t care if I order one and it takes 6 months to be made and delivered. At least I’ll get one.

 

[West Texas CEO]

 

[Isa]

Seriously why haven’t they done that yet? It’s so simple.
I don’t care if I order one and it takes 6 months to be made and delivered. At least I’ll get one.

Seriously, its a good idea and could start cutting out the scalpers. Maybe. Doesn't Tesla do this as well? People order vehicles all the time, and wait for supply to get where it needs to be and manufacturing etc. I'm surprised such advanced tech-toys aren't more well thought out, but then again its not exactly automobile industry money.

I too am glad I got my PS5 and now Series X when I could. Not into the waiting game, and the perks are great. My best friend just got his Series X and loves it. And that's just playing old games. I hope supply is able to get beefed up soon so my fellow gamers can get in on the action, there are a few great games on PS5 right now despite what some might claim. And the instant loading and great gfx in RE8 is just icing on the cake.

 

[HarryKS]

Bruh.

 

[eyesabitdull]

Ahhhhhhhhhhhhhhhhhhhhhhh damn.

Might just fork out for a scalped edition by end of the year if so.

I'll just start saving for it.

 

[Seetzer]

In Poland the situation is really crap, almost no consoles (like everywhere) but retails companies refused to sell them without a pack that increased price like 150 euros and included ps4 games and of course the value of the pack is much lower.

 

[Con_Z_ǝdʇ]

Weird times!

 

[Graciaus]

Whatever. I think it's more likely I'll just get a new PC at this point. Honestly, retailers should be just taking pre-orders and ship them out once they have the stock to do so.

Unless you plan on buying a prebuilt good luck finding parts.

 

[THE DUCK]

This is bad, also means pc grafix card availability will suck until next year.....

 

[THEAP99]

After reading rumours about a possible refresh next year I'm not happy at all.

There is no refresh next year. In what world would it make sense to release a slim or pro model when the current one can't meet demand?

 

[Panajev2001a]

There is no refresh next year. In what world would it make sense to release a slim or pro model when the current one can't meet demand?

The point of the revision would be to increase production to meet demand, it would employ a refined manufacturing process which would bring a slight cost reduction and the ability to squeeze more working chips per wafer (6nm being a refined version of TSMC’s 7nm EUV process allows for slightly smaller and more power efficient chips).

Having already a smaller SoC and getting smaller ones next years as well as likely having more working chips binned per wafer (more dies able to hit the target frequency and operate correctly) will be a non insignificant boost to production.
It gives them a chance to holistically look at PS5 and find a way to make it easier to ramp up volume production and then reduce costs at some point too, but they do need to do better at fulfilling demand sooner rather than later.

 

[Pallas]

The rest of the world needs to become more independent of Chinese (and Taiwanese, while we're at it) companies again.

True, but it literally costs billions to build a facility to make these and years, I hear the machines are ridiculously expensive.

I know politics are a big no no but they(the government)need to really push a major corporation and help bankroll the construction of a major semiconductor manufactur facility.

 

[Jigsaah]

Im very fickle when it comes to this. First I'm like screw it, then I'm like "no I need one now" then they say they are gonna redesgn it, and I'm fuck it, I'll wait...then I realize Horizon might be out before then and I'm like "gotsta have it"

 

[modiz]

There is no refresh next year. In what world would it make sense to release a slim or pro model when the current one can't meet demand?

To make it even cheaper. That was the main reason for Sony to release slim consoles in the past. Cut features, make everything cheaper in the build and sell it for less.

 

[West Texas CEO]

Bruh.

C'mon man, what did you seriously expect, given the current conditions in technology?

 

[AdjudicatorHead]

Yep. And not only that, many games will be cross-gen for quite some time so I would wait until they improve the system. VRR, proper save states like quick resume, a non-crashing OS, expandable user-storage, copy saves to USB, working rest mode to only mention a few.

I feel like this crashing OS and non working rest mode thing is overblown.

I’ve used my PS5 almost every single day since launch and I haven’t had the OS nor a game crash a single time. I’ve also been using rest mode that entire time and I only had an issue with it messing up once, and that was around launch before the first system update. None since then.

I am waiting on VRR, however. Looking forward to that, as it’s great on my Series X. Expandable user storage isn’t essential to have this early though imo.

 

[HerjansEagleFeeder]

True, but it literally costs billions to build a facility to make these and years, I hear the machines are ridiculously expensive.

I know politics are a big no no but they(the government)need to really push a major corporation and help bankroll the construction of a major semiconductor manufactur facility.

Yes. I'm all for free markets and so on, but in a situation where some players simply aren't playing by the rules of a free global economy, you have to protect yourself. Also, when push comes to shove, it's always pretty clear where the lines of cultural division are. The west needs a new alliance for international economic collaboration and support, a new "block" of democratic and pluralist nations united by the values of the enlightenment.

 

[GymWolf]

I have to gift something to the guy at gamestop who preordered my ps5 months before the offical preorder was even a thing...

 

[Panajev2001a]

Yes. I'm all for free markets and so on, but in a situation where some players simply aren't playing by the rules of a free global economy, you have to protect yourself. Also, when push comes to shove, it's always pretty clear where the lines of cultural division are. The west needs a new alliance for international economic collaboration and support, a new "block" of democratic and pluralist nations united by the values of the enlightenment.

Maybe, but it sounds more like “free market == good until the other side is a threat/bigger and stronger” fears. So we like free market rules if they are a threat to others and not us.

 

[Topher]

I feel like this crashing OS and non working rest mode thing is overblown.

I’ve used my PS5 almost every single day since launch and I haven’t had the OS nor a game crash a single time. I’ve also been using rest mode that entire time and I only had an issue with it messing up once, and that was around launch before the first system update. None since then.

I am waiting on VRR, however. Looking forward to that, as it’s great on my Series X. Expandable user storage isn’t essential to have this early though imo.

I had problems with rest mode, but they are gone with the latest patch. I've had zero issues with my PS5 since then. VRR and storage need to happen soon if for no other reason than to remove it from the console war conversation.

 

[godhandiscen]

I don’t want to pay the scalper prices on principle. Since the drought will last i guess I have to get serious about tracking new shipments.

 

[Clintizzle]

I've read in places that the shortage may also have to do with the design of the console and the overall materials (plastic etc) in use being scarce.

This is all from Twitter and other forums so I don't think it's credible at all.

 

[cormack12]

At this rate GTA VI might be a launch title for some first time buyers. I'd be interested if they do change some materials as well though - like the glossy black for a matte finish for example. I think that's about the most they can do really.

 

[HerjansEagleFeeder]

Maybe, but it sounds more like “free market == good until the other side is a threat/bigger and stronger” fears. So we like free market rules if they are a threat to others and not us.

I totally agree, you're not wrong. Friendship in any meaningful sense doesn't exist between nations, not even between nations who are almost identical in culture and values (e.g. France and the USA). However, I do believe that peaceful coexistence and fruitful cooperation is possible if nations share common interests. For example, it'd seem much more plausible from my point of view that western countries support India (free democracy) instead of a totalitarian communist regime like China.

 

[Dacon]

Thank god I stopped giving a fuck.

 

[nbkicker]

To be honest, dont no why i rushed out to buy, because sonys ‘we believe in generations’ is a load of bull , returnal is the only game thats on the ps5 that u cant get on ps4, everything else is available on ps4, and even then games like miles morales etc ive played are only a slight bump up, ratchet ill buy next month and will enjoy but theres nothing for the rest of the year that we no is coming that u cant just get on a ps5

 

[Orta]

Daftest hardware launches ever, what exactly is worth the cost of a console on either system? Should have both been delayed until at least Winter 2021.

 

[KAL2006]

I'm glad I got mine when I did. I sold my.first 2 PS5s when it first got announced as I managed to bag them when oreorders opne3d. One to sell and one to keep, however I ended up selling both due to the amount of money people were paying as well at the time I was very busy as was renovating and moving houses so didn't really play it. Then soon as I moved houses and bought a new TV 4 months later I was desperate to get a PS5 and regretted selling the PS5s. It took 3 nights of searching discord groups and Twitter stock alerts. All I kept thinking about was PS5 those 3 days, but I got lucky the 3rd night and stayed up until 2am and manage to bag one due to a stock alert. Now I can rest and I'm glad I have one, though I'm not really playing any PS5 exclusives and just playing BC PS4 games that are enhanced in my backlog.

 

[Airbus Jr]

I'm glad I got mine when I did. I sold my.first 2 PS5s when it first got announced as I managed to bag them when

 

[Woopah]

Luckily Horizon 2 is cross gen anyway so it doesn't bother me. Now I just need the God of War sequel to be cross gen too.

 

[ToTTenTranz]

On one hand it's nice that Sony is actually managing to keep the same production ramp-up as the PS4 considering the worldwide semiconductor shortages. I guess it's a good indicator on the massive importance of the supply deals they make in the months / years in advance of launching the consoles.

OTOH, goddammit all the way throughout 2022? Geez will this nightmare ever end?

For example, it'd seem much more plausible from my point of view that western countries support India (free democracy) instead of a totalitarian communist regime like China.

Yes, it's exactly what's happening:

EU and India agree to resume trade talks at virtual summit

The European Union and India agreed to resume stalled free-trade negotiations and seek closer cooperation to combat climate change at a virtual summit on Saturday, as concerns about China bring Brussels and New Delhi closer.

www.reuters.com

 

[reksveks]

Yes, it's exactly what's happening:

EU and India agree to resume trade talks at virtual summit

The European Union and India agreed to resume stalled free-trade negotiations and seek closer cooperation to combat climate change at a virtual summit on Saturday, as concerns about China bring Brussels and New Delhi closer.

www.reuters.com

Trying to keep my month shut about the politics of India but yeah the west have an ally in India at the moment, still one that's extremely protectionist in terms of certain parts of trade policy (not saying its a bad thing). Helps that India dislike China.

 

[nbkicker]

Luckily Horizon 2 is cross gen anyway so it doesn't bother me. Now I just need the God of War sequel to be cross gen too.

I think god of war 2 will be cross gen, but will see if sony hold a play event or something for e3 next month cause at the min i cant see horizon, gow etc releasing this year when we havnt seen any gameplay etc and games which should have been out first quater 2021 pushed to latter 2021

 

[V1LÆM]

Eh, its not like there is any must play game on PS5 anyway.

right. i see people desperate to get a PS5 and i'm like shit they really must like Demon's Souls which is a remake of an 11 year old game. alright, Returnal is out and Ratchet & Clank is out in a month but seriously? lol. i'd get the desperation if God Of War, Horizon, and Gran Turismo were all out. they are the big hitters.

i think most people would be happy holding onto their PS4 throughout 2021 and start thinking about getting a PS5 in 2022. personally, if i ever get a PS5 it'll be 2023 at the earliest.

 

[DenchDeckard]

This is going to be a rough generation.... first three years is gonna suck.

 

[KAL2006]

right. i see people desperate to get a PS5 and i'm like shit they really must like Demon's Souls which is a remake of an 11 year old game. alright, Returnal is out and Ratchet & Clank is out in a month but seriously? lol. i'd get the desperation if God Of War, Horizon, and Gran Turismo were all out. they are the big hitters.

i think most people would be happy holding onto their PS4 throughout 2021 and start thinking about getting a PS5 in 2022. personally, if i ever get a PS5 it'll be 2023 at the earliest.

I think it's simply the desire of a new console hardware. Thats what it was for me. But I agree there is nothing special about any of the next gen systems right now. Nothing will beat the time I bought a N64 with Super Mario 64. Even when PS4 launched last gen it was better to have a system that's not slow as a PS3 the OS itself was such a huge upgrade. But it seems over time a new gen the excitement has been getting worse and worse. I bought a PS5 now as there is no need to wait if I'm gonna buy one eventually plus I had the money to burn. I have got some use out of it, Astrobot was a joy to play and loved the DualSense in that game. And now I'm playing my PS4 games backlog starting with enhanced games like God of War and Ratchet, it's nice that Sony game away free games as I haven't spent money on games yet.

 

[rofif]

right. i see people desperate to get a PS5 and i'm like shit they really must like Demon's Souls which is a remake of an 11 year old game. alright, Returnal is out and Ratchet & Clank is out in a month but seriously? lol. i'd get the desperation if God Of War, Horizon, and Gran Turismo were all out. they are the big hitters.

i think most people would be happy holding onto their PS4 throughout 2021 and start thinking about getting a PS5 in 2022. personally, if i ever get a PS5 it'll be 2023 at the earliest.

What about 4k or 4k60 ps4 games? All ps4 games run on it and most run better in some way.
That and Demons souls is amazing. it's my least fav souls game but it's still souls game.
Returnal does not interest me though

 

[kretos]