Sony gives update on PS5 stock as console shortages drag down results

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Sony’s is struggling to make enough PlayStation 5s to fulfil demand, it has said.

The warning came amid results that showed the company as a whole saw profits rise by 11 per cent. They were boosted primarily by a host of successes including the new Spider-Man film and Adele’s latest album.

But amid those came one big difficulty: making enough PlayStation 5s. The company is still suffering from difficulties getting hold of enough chips to make the consoles, it said.

That meant that its video game results actually fell short of expectations, in stark contrast to the business as a whole.

But Sony highlighted its recent purchase of Bungie – the developer of Halo and Destiny – for $3.6 billion as a demonstration of its commitment to gaming.

The purchase includes payments to the shareholder creators at the independent studio to ensure their retention, said chief financial officer Hiroki Totoki.

Analysts say the addition complements Sony‘s strength in shooting games and will further solidify its position.

But competition is heating up in the video game industry. Microsoft Corp. is buying Activision Blizzard, the maker of Candy Crush and Call of Duty, for $68.7 billion, turning the maker of the Xbox into one of the world’s largest game companies.

Sony has been branching into new areas, recently showing an electric-vehicle prototype at a Las Vegas trade show.

The company has said it hopes to turn the car into a new kind of entertainment space. Sony, which also makes TVs and portable digital music players, is also banking on the metaverse, the immersive virtual world, where it faces rivals like Facebook, or Meta.

Sony forecast an 860 billion yen ($7.5 billion) profit for the full year through March, down from 1 trillion yen in the previous fiscal year. The latest forecast marks an improvement from the 730 billion yen ($6.3 billion) profit it projected in October. 

Additional reporting by Associated Press