The PS5 is seeing unprecedented demand, but Sony has an ambitious plan to end the shortage

During an investor briefing, Sony Interactive Entertainment (SIE) CEO Jim Ryan offered a direct assessment of the PS5 inventory situation, saying Sony’s ability to supply the market with its latest generation console is “the one area where we have not met expectations”. In the next breath, however, he promised that much better days were ahead, in terms of console availability.
The thing is, scarcity is not a dry, dry situation. It’s not just a shortage of silicon, but what sony said is “unprecedented demand” for the PS5. In its first year on the market, the PS5 outsold the PS4 in its own first year on sale. But then, in the second year, the PS5 fell below the performance of the PS4 “due to supply constraints”.

“Covid-19 wreaked havoc on our supply chain in 2021. The situation is beginning to improve, although Covid-related uncertainties persist, particularly in the impact that lockdowns in Shanghai and Beijing could have” , Ryan said.

That’s the bad news. The good news is that, according to Ryan, things are “definitely improving” to the point that he and Sony expect the PS5 to close the gap to the PS4 in year three, then make a another leap forward in the fourth year of the PS5. the market. The key to this event is a significant increase in production.

“Beyond that, we anticipate significant further increases in console production bringing us to production levels that we have never reached before,” Ryan said.

It’s easy to say, but Sony doesn’t have a magic wand it can wave to magically bring more PS5 consoles to market. However, he may not need it. Sony says that by sourcing from multiple suppliers, it will be better placed to weather unstable market conditions. It is also banking on logistical negotiations to optimize PS5 delivery routes.

Is it lip service? Time will tell, although Sony obviously has a vested interest in supplying as many PS5 consoles as possible. When it comes to game monetization, spending on PS5 titles is 15% higher than the PS4 when it was released. Sony is also seeing higher engagement on PS5, with gamers spending more time playing games and spending more overall.

All of which means you might be able to buy a PS5 console this year or next. I’m crossing my fingers, anyway. For those of you who have already managed to get one, know that Sony Days of Play 2022 Sale Event is happening right now, with big discounts on games and accessories.

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