Connect with us

Hi, what are you looking for?


For Sony and Nintendo, the Provide-Chain Pile-Up Is Only a Velocity Bump

For Sony and Nintendo, the Provide-Chain Pile-Up Is Only a Velocity Bump

Provide-chain shortages proceed to be a near-term problem for


SONY -3.76%



NTDOY -1.69%

However their underlying companies are nonetheless going robust.

Anybody who has tried to purchase a PlayStation 5 realizes simply how tight provide is true now. And Sony’s outcomes for final quarter, introduced Wednesday, confirmed that. The Japanese firm shipped 3.9 million of the videogame consoles for the quarter ended December, that means it solely managed a slight improve for the vacation season in contrast with the earlier quarter. And Sony is now anticipating to promote 11.5 million PS5 for the fiscal 12 months ending in March, down from its earlier forecast of 14.8 million models, because it expects part shortages to proceed. Sony’s shares fell 6% Thursday.

Sony revised anticipated gross sales of PS5 consoles because it sees part shortages persevering with.


yelim lee/Agence France-Presse/Getty Photos

Nintendo did higher final quarter but it surely’s additionally going through supply-chain challenges. It offered 10.67 million Change consoles final quarter. That’s a 7.7% year-over-year drop, however nonetheless surprisingly robust given the console is getting into its sixth 12 months of life. The launch of a brand new model with a greater show in all probability helped. The corporate has now offered greater than 103 million models of the Change console, surpassing Wii’s 101.6 million. Nintendo additionally revised down estimated Change shipments for the fiscal 12 months ending in March to 23 million models from 24 million models, as a result of part shortages and logistics points.

Customers are seeing extra out-of-stock messages than ever, however stock monitoring web sites like HotStock and Zoolert are giving folks a greater probability of discovering the hot-ticket merchandise they’re searching for. Right here’s how these web sites work. Illustration: Sebastian Vega

Regardless of the persevering with challenges of delivery {hardware}, it’s encouraging that each corporations are seeing more-stable gross sales of video games, particularly on-line. Regardless of an 8% year-over-year drop in sport income for the December quarter, Sony recorded a 15% improve in working revenue within the section and raised its working revenue forecast for the fiscal 12 months. Decrease advertising bills in contrast with the earlier 12 months when the PS5 launched additionally helped. Nintendo likewise had comparatively resilient software program gross sales.

So whereas supply-chain constraints imply they can’t promote as many consoles as would in any other case have been the case, the 2 corporations’ stable consumer bases means new video games—which aren’t constrained by part shortages—can nonetheless promote very nicely.

One other query is, how will the 2 video games giants react to


industry-shaking $75 billion acquisition of

Activision Blizzard

? Sony already responded this week by shopping for sport maker Bungie for $3.6 billion. Extra offers will seemingly come quickly. Nintendo might, nonetheless, take a extra low-key method given the corporate’s custom of growing its personal branded video games.

Delivering shipments of the videogame consoles that avid gamers are determined to purchase is the short-term problem for Sony and Nintendo—not a horrible drawback to have, all issues thought-about.

Long run, delivering content material that individuals love stays their recipe for achievement.

Write to Jacky Wong at

Copyright ©2022 Dow Jones & Firm, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

You May Also Like


A member of Pakistan’s parliament, Sania Ashiq Jabeen was born in Lahore and raised there. She studied at the National College for Drug Administration...


France, which has opened its borders to Canadian tourists, is eager to see Canada reopen to the French. The Canadian border remains closed...


Kashechewan First Nation in northern Ontario is experiencing a “deepening state of emergency” as a result of surging COVID-19 cases in the community...


The Liberals remain poised to regain a majority government in the next federal election, a new poll suggests, while support for the Conservatives...