The PS4 is selling at a slightly lower pace than last year, and the Nintendo Switch is having some difficulty meeting demand. The gaming console market seems to be saturated with too many options for players of all tastes, which could lead to shortages in future years unless more content is produced.
Sony and Nintendo will be in short supply again this year. This is the third time in a row that they have been in short supply. With the release of new consoles, it is expected that the shortage will continue for another year.
TOKYO — Sony SONY 1.43 percent Group Corp. and Nintendo Co. NTDOY 1.96 percent said component shortages would keep their flagship videogame consoles in low supply throughout the year, prolonging an issue that has plagued both businesses.
“At this time, the chip scarcity has no end in sight,” Nintendo president Shuntaro Furukawa remarked.
Hiroki Totoki, Sony’s chief financial officer, said the firm expected to sell 18 million PlayStation 5 gaming consoles in the current fiscal year, which ends in March 2023, down from a prior estimate of 22.6 million. He claims that demand exceeds Sony’s ability to provide it.
Mr. Totoki mentioned Covid-19 limitations in China, including a shutdown in Shanghai, which have made it difficult for enterprises to produce and distribute gaming machine components.
“If the pandemic situation in China worsens or the lockdown stretches further, it would most definitely damage our output,” he added.
Since its release in 2020, the PlayStation 5 has been famously difficult to get. Sony said it sold 11.5 million copies of the system in the fiscal year that ended in March 2022, falling short of its original aim of 14.8 million.
The good news for Sony is that it is selling every videogame system and a lot of game software. Last fiscal year, this was combined with strong profits from its movie studio, music business, and consumer electronics sector, resulting in a record operating profit of 1.2 trillion, or $9.2 billion.
‘At this moment, there is no end in sight to the semiconductor scarcity,’ says Nintendo President Shuntaro Furukawa.
Reuters photo/Kim Kyung-hoon
Nintendo, which is more reliant on videogame hardware sales than Sony, saw sales and earnings dip marginally last fiscal year and expects a further drop this year, owing to supply issues.
Last fiscal year, Nintendo sold just over 23 million Switch consoles, down 20% from the previous year, and sales are likely to drop even more this year to 21 million units.
Mr. Furukawa, Nintendo’s president, said that even that number was uncertain due to a lack of semiconductors and other components. Nintendo forecasted a net profit of 340 billion yen ($2.6 billion) this fiscal year, down from 478 billion yen previous fiscal year.
Separately, Nintendo said that at the end of September, it will conduct a 10-for-1 stock split in order to attract more individual investors in Japan, where the company’s shares are listed. The current minimum purchase of Nintendo stock, 100 shares, would cost a Japanese retail investor more than $40,000, putting it out of reach for many.
—This paper was co-written by Kosaku Narioka.
Yang Jie may be reached at [email protected], and Chieko Tsuneoka can be reached at [email protected]
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‘Console Makers Warn Of Shortages,’ appeared in the print edition of the May 11, 2022, issue.
The “nintendo year videogame machines to be” is a statement from the CEO of Nintendo that the company has predicted a shortage of their products this year. The CEO predicts that there will be a shortage of consoles, games and accessories.
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