Microsoft, Sony's Big Woe With PlayStation 5, New Xbox Series: High Demand, Very Low Supply

Microsoft, Sony's Big Woe With PlayStation 5, New Xbox Series: High Demand, Very Low Supply

Sony Corporation SNE and Microsoft Corporation’s MSFT new consoles have failed to rack up sales numbers in Japan achieved by their predecessors on account of supply constraints, Bloomberg reported Wednesday.

What Happened: Sony reportedly sold 118,085 PlayStation 5 units between Nov. 12 and Nov. 15, a third of PS4 sales over the launch weekend. 

Microsoft managed to sell 20,534 Xbox Series X and S consoles in six days beginning Nov. 10. The consoles failed to exceed the 23,562 sales registered by Xbox One during its first days of launch, according to estimates made by Famitsu, a Japanese video game magazine.

Citi Research analysts Kota Ezawa and Yui Shoji point to supply shortages in the United States, where sales are on a first-come, first-served basis, mirroring those in Japan.

“This seems to point to low supply quantities, as well as strong post-release demand,” wrote the analysts, according to Bloomberg.

Serkan Toto, an industry consultant based out of Tokyo, claimed that Factory and logical disruptions caused by the ongoing COVID-19 pandemic have affected the manufacturers’ ability to keep up with the supply momentum. 

Why It Matters: Microsoft released its two consoles to 37 countries, while the previous model had made its debut in 13 countries. Sony released PS5 to 65 countries, which is nearly double the number of nations that got PS4 at its launch. The simultaneous launches could have thinned supplies, noted Bloomberg.

Retailers in Japan are reportedly unsure when they would be able to stock the consoles, while prices on the Mercari flea market have reached up to $1,000. The usual retail price for the units is between is $400 to $500.

PlayStation 5 was sold out on the day of its launch in Japan. The console’s debut in the United States led to glitches on the websites of both Walmart Inc WMT and Best Buy Co Inc BBY.

Price Action: Microsoft shares closed 1.32% lower at $211.08 on Monday. The same day, Sony shares closed 1.63% lower at $88.25 in New York. 

See Also: PlayStation 5 Might Outsell New Xbox Series But Gaming Subscription Service Gives Microsoft An Edge, Analysts Say

Photo courtesy: Sony

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