Sony and Nintendo video game machines will be in short supply again this year

Sony Group Corp. and Nintendo Co. said their flagship video game machines will likely be in short supply all year due to component shortages, prolonging a problem that has plagued both companies.

“There is no end in sight to the semiconductor shortage at this point,” said Nintendo President Shuntaro Furukawa.

Sony chief financial officer Hiroki Totoki said the company aims to sell 18 million units of its PlayStation 5 video game console in the current fiscal year, which ends in March 2023, against a previous projection. of 22.6 million. The demand is more than Sony can supply, he said.

Among other issues, Totoki cited China’s Covid-19 restrictions, including a lockdown in Shanghai, which have made it difficult for companies to manufacture and ship parts used in gaming machines.

“It would likely affect our production if the pandemic situation in China worsens or the lockdown expands further,” he said.

The PlayStation 5 has been notoriously hard to get since its introduction in 2020. In the fiscal year ending March 2022, Sony said it sold 11.5 million units of the machine, below the previous target of 14. ,8000000.

The good news for Sony: it sells all the video game machines it can make as well as a lot of game software. Combined with strong results from its film studio, music division and consumer electronics unit, this led to a record operating profit of 1.2 trillion yen, equivalent to 9.2 billion dollars in the previous fiscal year.

Nintendo, which depends more than Sony on sales of video game hardware, saw its sales and profits fall slightly over the past fiscal year and forecasts a further drop for the current year, also linked to supply problems.

Nintendo said it sold just over 23 million Switch machines in the past fiscal year, down 20% from the previous year, and sales are expected to drop further this year to 21 million units. .

Mr. Furukawa, Nintendo’s chairman, said even that figure was not assured as supplies of semiconductors and other components remained tight. Nintendo’s projected net profit would fall in the current fiscal year to 340 billion yen, or $2.6 billion, from 478 billion yen in the previous fiscal year.

Separately, Nintendo said it would conduct a 10-for-1 stock split in late September in a bid to attract more individual investors in Japan, where the company’s shares are listed. Currently, the minimum purchase of Nintendo stock – 100 shares – would cost a Japanese investor the equivalent of over $40,000, putting it out of reach for many people.

This story was published from a news agency feed with no text edits

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