Sony hopes to sell 18 million PS5 consoles this fiscal year, and while the company says it can get the parts to produce that many, it still can't keep up with consumer demand.
Executive deputy president and CFO Hiroki Totoki discussed Sony's PS5 outlook in the Q&A segment of the company's latest earnings webcast, following up on its in-depth FY2021 report. As Totoki explained, Sony has actually reduced its PS5 sales forecast due to production constraints, but he says the company is confident it can sell 18 million this year – roughly a 56% increase over the previous fiscal year's 11.5 million.
"When it comes to procurement of components, we have not given up on this," Totoki said. "We would like to continue to work on this, but at this point in time, what we can say safely is that we can achieve the necessary components for 18 million units."
However, while Totoki maintains that "we can get the parts and components" to hit this target, he was quick to acknowledge that "we feel there is a bit higher demand than that."
"So if the question is whether we can meet the demand, I think we're still short somewhat," he added.
Sony has already reduced its PS5 sales expectations from 22.6 million down to the current 18 million due to manufacturing constraints, and Totoki acknowledged that other factors could further affect production. The latest COVID lockdown in China, in particular, may disrupt Sony's plans.
"At this moment, 18 million units is the focus for this fiscal year," Totoki said. "For components, we do have a good feeling about how to procure the components and parts. But going forward, for example, the situation with the pandemic in China, if it worsens going forward, the lockdowns will expand further, then that would have a possibility of affecting the production, and that can be a downside risk. However, this will not happen overnight, so for us, we need to be proactive, have a focus, and take appropriate measures."
Total PS5 sales have topped 19 million, Sony said in its report, so if the company can deliver 18 million units this year, it would nearly double the amount of consoles sold.
Supply issues caused PS5 to miss its year two sales target by over three million units.
