Sony believes it can sell 18 million PlayStation 5 consoles for financial year ending in March 2023 – but depends on component supply from China
Lockdowns in China could affect Sony’s ability to manufacture the console, which has been in short supply since its launch in November 2020, the company said.
“What I can say now is that we can procure enough components for 18 million units,” Sony chief financial officer Hiroki Totoki said at a press briefing.
For the financial fourth quarter ending March 2022 Sony sold only 2 million PlayStation 5 units, bringing the total for the year to 11.5 million, more than 3 million below its target of 14.8 million.
Overall profits for the quarter ended 31 March rose to 138.6 billion yen (£86.1m) from 66.5bn yen the previous year.
But this was lower than an average of 147bn yen in profits estimated by analysts, according to Refinitiv.
Profits were boosted by revenue at Sony’s gaming and network services business, which tripled in the quarter from a year earlier to 55.6bn yen.
Sony predicted that revenues at the unit would rise by 34 percent year-on-year in the current financial year due to an expected increase in hardware sales, as well as increased sales of third-party games.
But it expects profits at the unit to fall 12 percent this year as it spends on acquisitions. The firm purchased Halo developer Bungie for $3.6bn (£2.9bn) in February, and has been rumoured to be planning further major acquisitions.
Ongoing chip shortages
Sony’s full-year profits for the year ended March 2022 were also boosted by its movie studio unit and the success of the most recent Spider-Man film.
In recent months many electronics makers have been affected by difficulties in sourcing parts, particularly computer chips, due to disruptions caused by the pandemic.
Apple, for instance, while it has seen its profits surge in spite of the shortages, recently said sales could be dented by as much as $8bn in the current quarter due to supply chain problems.
Carmakers have been amongst the worst hit by supply chain disruption, with Tesla reportedly slowing production at its Shanghai plant this week due to an inability to source parts.
BMW chief executive Oliver Zipse recently said the company expects chip shortages to continue into next year.