Sony recently issued a warning to analysts that the supply of the PlayStation 5 game console is likely to remain restricted through 2022. It’s certainly not uncommon for a new and popular game console to be difficult to find in stores. The coronavirus pandemic, along with a shortage of microprocessors and an abundance of scalpers, has combined to make the PlayStation 5 game console extremely difficult to find. The announcement that the console will remain in short supply through 2022 suggests Sony will struggle to boost sales targets for the PlayStation 5.
Sony reported in April that it had sold 7.8 million PlayStation 5 consoles as of March 31, 2021. The company wants to sell 14.8 million units during its current fiscal year, keeping it on pace to match sales of the PlayStation 4. The PlayStation 4 has been highly successful, selling over 115.9 million units since its launch.
Sony admitted that it is having a hard time keeping up with the demand for the PlayStation 5 game console partly because of shortages like semiconductors. Sony offered no indication of an official estimate for when supply is expected to normalize. Sony CFO Hiroki Totoki said he doesn’t expect demand to slow this year. He said that even if Sony can secure “a lot more devices and produce many more units of the PlayStation 5 next year, supply still won’t catch up with demand.”
While struggling to meet the demand for its most recent game console, Sony has announced that it will buy back up to $1.8 billion of its own stock shares. The announcement comes after the company announced a profit for the quarter ending in March that fell short of estimates.
Sony offered a forecast that operating profit would decrease about four percent during its current fiscal year. Sony shares have dropped about eight percent after the earnings report was provided on April 28, while the stock has risen 75 percent compared to the previous year.