Sony executive Eric Lempel said in an interview with CNBC that the company was on track to meet its shipping targets for 2023, suggesting a positive outlook for PS5 availability.
“We launched [PS5] back in 2020,” Lempel told CNBC. “We suffered from the same supply chain issues that everybody was dealing with. Unfortunately, we weren’t able to deliver PS5 to ever consumer that wanted one.”
The recent decline in Sony’s stock price can be attributed to a combination of factors affecting their diverse business sectors.
In 2022, Sony’s consumer electronics, semiconductors, and computer vision systems business faced a downturn in dollar terms, with overall revenue declining 6.7% and operating income falling 12%. This decline was significantly impacted by decreased TV unit sales, which also led to negative operating income in the consumer electronics sector in the last quarter of the fiscal year. Adding to this, general market conditions, such as further stock price declines and inflation, could pressure Sony to increase its capital expenditures, potentially lowering the quality of operating income and requiring a revaluation of the stock. These sector-specific challenges, along with broader market risks, contribute to the observed decrease in Sony’s stock price.
Sony has made significant progress with PlayStation 5 sales. They reported an increase in sales for Q2 of FY2023 compared to the same quarter in the previous two fiscal years, with over 46.6 million units sold since launch. Despite facing some challenges, including underwhelming sales which were part of broader concerns that included the impact of Hollywood strikes, Sony has raised its annual profit forecast and appears optimistic about future earnings.
The company is confident about achieving record-breaking sales for the PlayStation 5 this year. They have set an ambitious sales target of 25 million units for the year and believe they are on track to meet this goal. This confidence is bolstered by the resolution of supply chain issues that previously hindered PS5 distribution.
Additionally, Sony is preparing for the holiday season with a fully stocked supply of PlayStation 5 consoles and is anticipating one of the strongest seasons in the company’s history. This is likely to be supported by the launch of new titles, such as the PS5-exclusive Marvel’s Spider-Man 2.
Sony has also announced the PlayStation 5 slim model, which is set to release this holiday season. The new model will be available once the inventory of the current PS5 model is sold out, with the PS5 with an Ultra HD Blu-ray disc drive priced at $499.99, and the PS5 Digital Edition priced at $449.99.
In summary, despite some headwinds, Sony’s PlayStation 5 sales are robust, and the company is gearing up for a potentially record-breaking year with renewed optimism, a resolution to supply chain issues, and new product launches.
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