Sony PlayStation is popular around the world and it is not surprising that customers are going out of their way to buy them. However, it is quite hard to come by PlayStation 5. Interestingly, since November 2020, customers have had major difficulties getting their hands on a PS5.
As a reminder, 4.5 million consoles were reportedly shipped in 2020. Nevertheless, the production line is still facing extreme delays. If a person would like to purchase the Sony PlayStation 5 in 2021, it could take several months to accomplish that goal. Let’s have a look at the report prepared by Sony to learn more about the situation.
According to a February earnings report, the reason for the lack of available stock is down to the global shortage of semiconductors as well as other essential parts. Unfortunately, it is difficult for Sony to increase the production of the console. As stated above, the shortage of semiconductors and other important parts made it difficult to solve this problem.
Sony PlayStation 5 and various factors
Interestingly, these shortages are down to a combination of factors. Importantly, the first one is the U.S. regulation restricting the sale of semiconductors from China. Another one is the supply deficiencies due to the the coronavirus pandemic.
Importantly, less money going into chip sales and the need for coronavirus safety practices caused an overall loss of production volume. Hopefully, Sony is working hard to ship as many units as possible.
Based on the information taken from the report, PlayStation 5 is quite popular. People should keep in mind that, the company has forecast its best fiscal year on record for its gaming division in 2021 due to the release of the new console and the following increase in PlayStation Plus subscriptions.
Interestingly, the manufacturing cost of the PS5 actually exceeds the $749 price point. As a result, it means the console is selling at a loss. Nevertheless, the strategy behind this decision is to create a reasonably-priced console to encourage accessibility for all consumers. Moreover, this loss is then made up with increased digital sales and subscriptions.
It is worth noting that, digital sales are on the rise- 63% of Sony’s game sales were digital in 2020. Interestingly, the interest in digital sales continues to rise and it means companies should pay more attention to this information. Sony has the potential to sell millions of video game consoles in 2021.