Because of a semiconductor shortfall and supply chain issues, Sony reduces its PS5 sales projection.
As the firm is finding it difficult to meet consumer demand as a result of the effect of the semiconductor chip scarcity and worldwide supply chain disruptions, Sony has reduced its fiscal year 2021 sales projection for the PlayStation 5.
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The popular gaming system is expected to ship 11.5 million units in total during the fiscal year 2021, which is less than the 14.8 million units that were previously predicted by Sony. Due to this, it is anticipated that the Gaming & Network Services segment’s annual revenue would decline by 170 billion yen, or 6%, to 2.73 trillion yen.
On the company’s earnings call on Wednesday, Sony CFO Hiroki Totoki said, “Limitations on the supply of components are likely to remain moving forward, but we are continuing to exert every effort to satisfy the great demand for PS5.” In the medium term, he continued, the business anticipates playing “catch-up,” stressing that it is collaborating closely with its partners that provide componentry.
In comparison to the 20.2 million PS4 units sold over the same period, as of December 31 the PS5 has shipped over 17.3 million units since its introduction in November 2020. In the third quarter, the business sold 3.9 million PS5 systems overall, which is down from 4.5 million at the same time last year.
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The updated prediction comes as Microsoft, which recently revealed intentions to purchase Activision Blizzard for $68.7 billion, is becoming a more significant competitor for Sony. The transaction should be completed in the 2023 fiscal year. Days after the announcement, Sony said it would pay $3.6 billion to buy Bungie, the company behind Halo and Destiny.
Not just Sony, but other major game companies are suffering from the supply chain delays and chip scarcity. Nintendo lowered its projection for Switch console sales on Wednesday from 24 million to 23 million units as a result of similar semiconductor-related issues and supply delays. Over the last nine months, the business sold 18.95 million Switch units, a 21% decrease from the previous year.
Sony’s game segment reported 813.3 billion yen in total sales for the third quarter, an 8% decrease from the same period last year. The business’s image sensor segment had sales increase 22% year over year to 57.8 billion yen, while its movie division saw revenue increase 141% year over year to $461.2 billion yen.
How Many Xbox Sales Are There Compared to 32 Million PS5 Sales, Exactly?
Sony just announced the results of a record-breaking quarter for the PS5, now that supply has been increased and they can begin manufacturing units at a fair rate.
With 7.1 million consoles sold in the past three months alone, the PS5 has already sold 32 million units, a significant rise over the 3.9 million units sold in the same quarter last year.
Yet even with this recent upswing, the PS5 is still trailing behind PS4 sales, which had reached 37 million copies at this point in its lifecycle a generation ago due to early supply constraints.
Sony’s PS5 has experienced its best sales quarter since its debut.
When Sony said earlier this month that the PlayStation 5 scarcity was gone, it wasn’t lying. According to its most recent earnings report, the PS5 had its best quarter ever, shipping 7.1 million units in the three months prior to December 31, 2022. It is almost twice as many as the 3.9 million units it sold in the same period last year.
How Many Xbox Sales Are There Specifically in Comparison to 32 Million PS5 Sales?
Now that supply has risen and they can start producing PS5 devices at a reasonable rate, Sony has recently revealed the results of a record-breaking quarter for the console.
The PS5 has now sold 32 million units, a substantial increase from the 3.9 million units sold in the same quarter last year, with 7.1 million consoles selling in just the previous three months alone.
Yet, despite this recent improvement, PS5 sales are still lagging behind those of the PS4, which had 37 million copies sold at this stage of its lifespan a generation ago due to early supply issues.
While PS Plus membership are declining, income is increasing.
Sony has upped its year-end operating profit expectations to 1.18 trillion yen (about $9.1 billion), up from 1.16 trillion yen earlier, according to Nikkei, in part due to the rise in PS5 console sales. Despite the fact that the updated prediction still reflects a 2 percent year-over-year reduction, one analyst cited by Bloomberg was pleased with Sony’s performance in light of the industry’s general challenges. “It’s astonishing that Sony’s results are in line with forecasts given the present environment where demand is decreasing globally,” said Morningstar Investment Service analyst Kazunori Ito.
On a quarter-over-quarter basis, PlayStation Plus member numbers increased to 46.4 million, although they were still somewhat lower than the 48 million in the same period the year before. Nonetheless, network service income climbed by almost 17%, indicating that the updated PlayStation Plus membership levels from Sony are driving greater average revenue per user.
To reach its goal of 18 million console sales by the end of its 2022 fiscal year, Sony will need to keep selling PlayStation 5 systems at a comparable rate, which would need selling an additional 5.2 million consoles in the three months ending March 31st, according to VGC. The aim, though, could be feasible given the PSVR 2 headset, which the firm is releasing on February 22nd, and the apparent high-budget marketing campaign in progress.
PS5 sales increased by 200% last month across Europe | European Monthly Charts
In Europe, games were sold for 12.1 million units in the last month, a 19% decrease from the same time previous year.
This is based on GSD market data, which analyzes digital game sales from the majority of big AAA publishers in addition to physical game sales across all significant European nations. The article’s bottom has all the details.
Pokémon Legends: Arceus, which was a great hit in January, is the main cause of the fall. In 2023, there was no equivalent game.
FIFA, Call of Duty, Grand Theft Auto 5, and Red Dead Redemption 2 all performed better in January of this year than they did in January of last year. Mario Kart 8: Deluxe, on the other hand, saw a substantial decline in sales (down 37% from the previous year).
A few new games appeared in the charts. Dead Space: Remastered by EA ranks sixth. The Callisto Protocol, a Dead Space-inspired game created by members of the original game creators, was released little over a month before to the release of this one. Even without the use of digital media, The Callisto Protocol performed better in its first two weeks than Dead Space. Krafton, the publisher of the Callisto Protocol, is not a member of the digital panel
Many Japanese-focused games are among the other new titles on the lists, which is typical for this time of year. Nintendo’s Fire Emblem Engage is barely ahead of the PS5 game Forspoken at No (no digital data for Fire Emblem). One Piece Odyssey by Bandai Namco is ranked No. 16 in the meanwhile.
PS5 supply has considerably increased throughout Europe.
493,000 video game consoles were purchased in January throughout the monitored European markets (UK and Germany are not included in the statistics). Go here for data for the UK.
The tremendous 202% increase in PS5 sales throughout the continent, which accounts for the whole 15.5% increase over January of last year, is to blame. Last January, there was a shortage of the PS5, but things have since greatly improved.
Just ahead of Nintendo Switch (sales down 11% from January 2022) and Xbox Series X and S (sales down 32%), PS5 was the most popular console of the month.
1.76 million additional goods for accessories were sold in the tracked markets, a 2.1% decrease from the previous month. The most popular accessory was the DualSense PS5 controller. Last month, 1.37 million points and subscription cards were sold in Europe, a 4% decrease from January 2022.