This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: For Sony and Nintendo, Supply-Chain Pile-Up Is Just a Speed Bump
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Tech > For Sony and Nintendo, Supply-Chain Pile-Up Is Just a Speed Bump
Tech

For Sony and Nintendo, Supply-Chain Pile-Up Is Just a Speed Bump

Editorial Board Published February 4, 2022
Share
For Sony and Nintendo, Supply-Chain Pile-Up Is Just a Speed Bump
SHARE

Supply-chain shortages continue to be a near-term challenge for Sony SONY 1.01% and Nintendo. NTDOY 2.31% But their underlying businesses are still going strong.

Contents
Sony revised expected sales of PS5 consoles as it sees component shortages continuing.Newsletter Sign-upMarkets

Anyone who has tried to buy a PlayStation 5 realizes just how tight supply is right now. And Sony’s results for last quarter, announced Wednesday, confirmed that. The Japanese company shipped 3.9 million of the videogame consoles for the quarter ended December, meaning it only managed a slight increase for the holiday season compared with the previous quarter. And Sony is now expecting to sell 11.5 million PS5 for the fiscal year ending in March, down from its previous forecast of 14.8 million units, as it expects component shortages to continue. Sony’s shares fell 6% Thursday.

Sony revised expected sales of PS5 consoles as it sees component shortages continuing.

Photo: yelim lee/Agence France-Presse/Getty Images

Nintendo did better last quarter but it’s also facing supply-chain challenges. It sold 10.67 million Switch consoles last quarter. That’s a 7.7% year-over-year drop, but still surprisingly strong given the console is entering its sixth year of life. The launch of a new version with a better display probably helped. The company has now sold more than 103 million units of the Switch console, surpassing Wii’s 101.6 million. Nintendo also revised down estimated Switch shipments for the fiscal year ending in March to 23 million units from 24 million units, due to component shortages and logistics issues.

Shoppers are seeing more out-of-stock messages than ever, but inventory tracking websites like HotStock and Zoolert are giving people a better chance of finding the hot-ticket products they’re looking for. Here’s how those websites work. Illustration: Sebastian Vega

Despite the continuing challenges of shipping hardware, it’s encouraging that both companies are seeing more-stable sales of games, especially online. Despite an 8% year-over-year drop in game revenue for the December quarter, Sony recorded a 15% increase in operating profit in the segment and raised its operating profit forecast for the fiscal year. Lower marketing expenses compared with the previous year when the PS5 launched also helped. Nintendo likewise had relatively resilient software sales.

So while supply-chain constraints mean they cannot sell as many consoles as would otherwise have been the case, the two companies’ solid user bases means new games—which aren’t constrained by component shortages—can still sell very well.


Newsletter Sign-up

Markets

A pre-markets primer packed with news, trends and ideas. Plus, up-to-the-minute market data.


Another question is, how will the two games giants react to Microsoft’s industry-shaking $75 billion acquisition of Activision Blizzard ? Sony already responded this week by buying game maker Bungie for $3.6 billion. More deals will likely come soon. Nintendo may, however, take a more low-key approach given the company’s tradition of developing its own branded games.

Delivering shipments of the videogame consoles that gamers are desperate to buy is the short-term challenge for Sony and Nintendo—not a terrible problem to have, all things considered.

Longer term, delivering content that people love remains their recipe for success.

Write to Jacky Wong at [email protected]

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

TAGGED:Tech NewsWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article Buying a First Home Costs More Than You Think, Especially Now Buying a First Home Costs More Than You Think, Especially Now
Next Article The Zuckerberg Effect Fading in Social Media The Zuckerberg Effect Fading in Social Media

Editor's Pick

Tyler Robinson’s Discord Web page, Alleged ‘Groyper’ Affiliation Spark Debate on Social Media

Tyler Robinson’s Discord Web page, Alleged ‘Groyper’ Affiliation Spark Debate on Social Media

Studying Time: 4 minutes On Friday morning, President Donald Trump revealed {that a} suspect had been arrested in reference to…

By Editorial Board 6 Min Read
Save  on One in every of Our Favourite Android Tablets
Save $70 on One in every of Our Favourite Android Tablets

In case you're attempting to find a well-priced Android pill that is…

3 Min Read
What Are Ebike ‘Classes’ and What Do They Imply?
What Are Ebike ‘Classes’ and What Do They Imply?

Over the previous few years, electrical bikes have skyrocketed in recognition (aware…

5 Min Read

Oponion

Toyota Says It Will Shift More Rapidly to EVs

Toyota Says It Will Shift More Rapidly to EVs

TOKYO— Toyota Motor Corp. TM 2.65% , the last voice…

December 14, 2021

What are the polls displaying after one other assassination try on Trump? | US Information

Donald Trump has confronted a second…

September 17, 2024

Chinese Property Developer Kaisa Proposes $400 Million Debt Swap

Kaisa Group Holdings Ltd., which in…

November 25, 2021

Tribal well being officers work to fill vaccination gaps as measles outbreak spreads

Cassandra Palmier had been that means…

July 26, 2025

The depressing optics of Trump at ‘Les Misérables’

President Donald Trump, Vice President JD…

June 12, 2025

You Might Also Like

If You have Acquired the Proper Rig, Examine Out This Sale on Samsung’s 4K Gaming Monitor
Tech

If You have Acquired the Proper Rig, Examine Out This Sale on Samsung’s 4K Gaming Monitor

In search of a formidable gaming monitor to match your highly effective desktop? The 32-inch model of the Samsung Odyssey…

3 Min Read
4 Methods to Promote or Commerce In Your Outdated iPhone
Tech

4 Methods to Promote or Commerce In Your Outdated iPhone

Whether or not you’re out there for the super-slim new iPhone Air or planning to go large with the iPhone…

5 Min Read
Which iPhone Ought to You Purchase (or Keep away from) Proper Now?
Tech

Which iPhone Ought to You Purchase (or Keep away from) Proper Now?

What's New in iOS 26?{Photograph}: Julian ChokkattuWait, what occurred to iOS 19? When you're confused as to how we received…

16 Min Read
A number of Excessive-Finish TCL TVs are Virtually 50% Off In the present day
Tech

A number of Excessive-Finish TCL TVs are Virtually 50% Off In the present day

In the event you're out there for a brand new tv, a few of our favourite QLED screens from TCL…

3 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?