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Semiconductor shortage squeezes PlayStation 5 supplies

The international semiconductor shortage is threatening to constrain PlayStation 5 supplies all through the remainder of this yr, at the same time as Sony’s gaming chief insisted the corporate would have the ability to produce “decent numbers” of its new console within the second half of 2021.

The PS5 is among the most sought-after tech merchandise of current months, with shipments promoting out as quickly as they reached shops when the console was launched in November final yr.

Coronavirus lockdowns have solely added to avid gamers’ demand for the newest consoles and software program, fuelling what are anticipated to be report earnings for Sony’s gaming division within the monetary yr to March. Sony upgraded its gaming unit’s annual income forecasts earlier this month primarily due to enhancing gross sales of video games software program, companies and equipment.

But the broader surge in demand for digital parts, from the automotive trade to smartphones, over the previous yr has collided with pandemic-related disruption to semiconductor manufacturing. Analysts anticipate the chip trade will take many extra months to recuperate.

Jim Ryan, president and chief govt of Sony Interactive Entertainment, mentioned he anticipated the persevering with PS5 provide limitations to “ease incrementally throughout 2021” however he refused to ensure that there could be sufficient to satisfy demand by the subsequent vacation gross sales season.

“It will get better every month throughout 2021,” he mentioned. “The pace of the improvement in the supply chain will gather throughout the course of the year, so by the time we get to the second half of [2021], you’re going to be seeing really decent numbers indeed.”

But he added: “There are very few magic wands that can be waved.”

Ryan reiterated Sony’s “aspiration” to promote extra PS5 consoles in 2021 than the 14.9m unit gross sales of its predecessor, the PlayStation 4, in its first 12 months. Earlier this month, Sony mentioned it had bought 4.5m PS5s in November and December.

That compares with 26m Nintendo Switch consoles bought in 2020, in accordance with Ampere Analysis, which additionally estimates Microsoft bought about 2.8m of its newest Xbox Series X/S within the closing two months of final yr.

“While far from weak, both Sony and Microsoft will rue their inability to produce more consoles to cater for strong demand,” mentioned Piers Harding-Rolls, analyst at Ampere.

Ben Bajarin, analyst at Creative Strategies, forecasts that the semiconductor slowdown will linger into 2022. “For them to catch up, demand has to slow down,” he mentioned. “I don’t see any end in sight.”

Ryan’s feedback got here as Sony revealed plans to launch a brand new digital actuality headset to hook up with the PS5, after the earlier PlayStation VR bought greater than 5m models.

Although Sony maintains that PSVR gross sales exceeded its expectations, digital actuality merchandise have usually bought poorly, particularly in contrast with the excessive hopes that adopted Facebook’s $2bn acquisition of Oculus VR in 2014.

More lately, there have been indicators of renewed development. Facebook reported “strong” gross sales of its newest headset, Oculus Quest 2, over the Christmas holidays. Apple is reported to be making ready a “mixed reality” machine for a launch that might come as quickly as subsequent yr.

Ryan offered few particulars on the brand new PlayStation headset’s specs or launch date, apart from to say it could be tethered with a single cable to the PS5 console.

“To really provide for a VR experience that PS5 owners will be happy with, that does require the system to be tethered,” he mentioned, hinting at a “high-end” system with wealthy graphics.

That method contrasts with Oculus, which now focuses on standalone, self-contained headsets, even when meaning compromising on graphical constancy. Oculus ended growth of its PC-connected Rift product line final yr.

“Obviously the technology has moved on since the first PlayStation VR headset, and we will capture that,” mentioned Ryan.

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