Sony Expects PlayStation 5 Supply Crisis To Loom Till 2022: Bloomberg - Sony Group (NYSE:SONY)

Sony Group Corp SONY warned an analyst group regarding PlayStation 5 supply crisis till 2022 partly due to the semiconductor chip crisis, insinuating sales target constraints for its latest games console, Bloomberg reports.
Sony had sold 7.8 million console units through March 31, 2021. The FY22 sales target is 14.8 million units. The popular PlayStation 4 has sold over 115.9 million units to date.
CFO Hiroki Totoki does not expect to catch up with the demand surge despite securing additional devices and additional production of PS5 next year.
Sony announced a buy back up to $1.8 billion (200 billion yen) shares after the March quarter profit fell short of analyst estimates. The company expects the operating profit to decline by 4% in FY22.
Sony shares have lost around 8% since the April 28 earnings report, after rising 75% over the previous year.
Sony needs to ramp up production as soon as possible and ensure consoles on store shelves, Totoki said. Totoki dispelled analyst concerns over pandemic induced remote demand saturation by emphasizing its market share and reputation, which led to the sales of over 100 million units of the PlayStation 4.
Sony’s monthly active users on PlayStation Network declined 4.4% Q/Q to 109 million during the March quarter. The sales of full games also declined during the quarter on a Y/Y basis.
Last week Nintendo Co Ltd NTDOY warned regarding a production impact from the component crisis. The company’s internal management’s guidance for console production lies between 28 million - 29 million consoles, above its official target of 25.5 million.
Price action: SONY shares traded higher by 0.96% at $97.97 on the last check Monday.

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