Sony Group Corp. (TYO: 6758) will be increasing production of its PlayStation 5 console amid supply chain disruptions attributable to computer chip shortage and COVID-19 lockdows. In addition, the company will also be expanding its games platform to capture more tiles on its PC and mobile versions.
According to the company’s data, the PS5 has undersold its predecessor in its second year due to component shortages especially the computer chips which has largely affected production in the electronics industry.
The CEO of Sony Interactive Entertainment, Jim Ryan, says they expect to close the gap in year three and overtake PS4’s install base the following year.
“Beyond the initial ramp up we’re planning for heavy further increases in console production, taking us to production levels that we’ve never achieved before. While COVID-19 lockdowns in China continue to create supply chain uncertainty things are definitely improving,” said the CEO.
The company now expects PS5 sales of 18 million units in the financial year ending March 2023 this will be on the higher side compared to the sales of 11.5 million consoles the company recorded in the previous financial year.