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

PS5 inventory shortages may soon be a thing of the past, as Sony is set to ramp up production of its flagship console in a bid to shore up its slumping profits.

That’s according to a trade analyst, who believes Sony will want to plug lingering gaps in PS5 demand after the company announced its earnings fell short of industry expectations. By increasing console production, Sony can reach consumers who have been clamoring for the console since its launch.

“We expect Sony to ramp up PlayStation 5 production volume this fiscal year to regain ground,” Macquarie Capital Securities analyst Damian Thong told Bloomberg, “but at the cost of pressure. on profit margins.

PS5

(Photo credit: Sony)

What does this mean for you?

This is good news for anyone struggling to get their hands on a PS5. The ongoing global chip shortage means Sony has produced fewer units of the console than it had anticipated. This led to stock shortages which made it decidedly difficult to purchase the console in retail stores.

If Sony commits to ramping up production of the PS5, we should see more hardware hitting shelves. This will not only reduce these shortages, but will also undermine unscrupulous dealers who buy the consoles in bulk to resell them at inflated prices.

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

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The PS5 and Xbox Series X have been plagued with persistent stock shortages. Sony’s console has sold 19 million cool units, as reported in the company’s fiscal year 2021 results. That figure surpassed the 12 million units sold of the Xbox Series X. PS5 sales even set a few records, such as surpassing lifetime sales of the Nintendo 64 in the UK.

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 show, as the flagship console is easier to find than the PS5.

If Sony wants to maintain its commercial lead over Microsoft, it will have to seriously increase production. Seeing more hardware on store shelves will be good news for Sony shareholders, as well as consumers eager to finally get their hands on the next-gen console.

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