Sonyof (NYSE: SONY) The PlayStation 5 console could be hard to find throughout the upcoming Christmas season, according to a recent Financial Times report. Semiconductor companies around the world are struggling to cope with increased demand after the volatility created by the coronavirus pandemic and geopolitical dynamics between the United States, China and other countries.
The Scorching PlayStation 5 launched in November and remains sold out in most outlets. Now, semiconductor manufacturing constraints mean Sony could find itself running out of critical components. A lot eBay sales of the premium version of the PS5, which normally sells for $ 500, still frequently exceed the $ 900 mark.
Sony Interactive Entertainment chairman Jim Ryan expects supply constraint issues to ease in the second half of the year. However, he also highlighted the inherent difficulty in meeting the challenges created by the semiconductor shortage. Unexpected difficulties in the chip market could have a more prolonged impact on the manufacturing of PS5.
Sony has made an impressive turnaround in the past five years, with its performance largely driven by its PlayStation the game division. Its latest console will play a big role in performance this year and beyond.
MicrosoftSony’s main rival in the field could also experience manufacturing issues with its recently launched next-gen Xbox consoles.
Shortages this year don’t necessarily mean Sony and Microsoft will be selling significantly fewer consoles in the long run; businesses will respond to pent-up demand before it dissipates completely. However, slower growth for the respective user bases of each console could result in lost software and services revenue.
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