PlayStation 5 sales fall behind PS4’s pace due to semiconductor shortage

Sony shipped 3.9 million PlayStation 5 consoles during its fiscal Q3. It shipped a total of 17.3 million PS5s to the company by the end of 2021. While it is the second strongest number for the fastest-selling console ever, it is less than the 4.5 million Sony shipped during the same period last year. Sony told investors that the shortcomings were due to supply-chain disruptions and a shortage of components. The company also expects these issues to continue.

An easy way to understand the harmful effects of scarcity is to compare the PS5 with the PS4. By most measures, the demand for the PS5 is equal to or greater than that of the PS4 at this point in its life cycle. But Sony managed to send 20.2 million PS4s in the same period. Again, this has nothing to do with the inability to sell the PS5 and has everything to do with the inability to source the key components to make the PS5.

During Q4 of 2014, Sony sold 6.4 million PS4s. a Simple chart from Neco Partners gaming analyst Daniel Ahmed Shows how the PS5 missed out on its potential due to supply issues.

Supplies for the PS5 are so limited that Sony is actually improving its vision, known as its “Games and Network Services” segment. Here’s how the company put it in its earnings report:

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Look at the demand

“Sales are expected to be lower than expected in October due to the expected decline in sales of PlayStation 5 hardware units, mainly due to a shortage of components, especially semiconductors. Operating revenue is expected to be higher than the October forecast due to the expected reduction in sales, general and administrative costs. ”

Sony Group Corporation earnings report, February 2, 2022

Those pesky semiconductors have caused trouble for Sony and Microsoft since the beginning of this new generation. It is also due to the lack of GPU and CPU in the PC. And supplies will continue to dry up for most of this year and probably beyond.

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