Sony is still facing difficulties meeting the demand for the long-expected PS5 due to the global growth of demand for computer chips.
Is Sony making money from PS5 sales?
The PlayStation 5 was officially released on November 12th, but at the moment, the cost of building a single PS5 unit is higher than the cost of selling it. That might seem surprising in the aftermath of Sony’s Q3 2020 financial report, released yesterday, in which the tech giant boasts of an annual gaming revenue increase of 40%. However, after taking a closer look at the report, you’ll soon discover that those increases came from the game and software sales, and network services such as PS Plus. The main issue that PS5 production faces are the shortage of silicon used for building computer chips. These days silicon suppliers have a much wider range of clients. That threatens the negotiating position of the Japanese brand and it affects the increase of the console cost.
When PS4 was launching, Sony got the sense of issues to come since mobile devices were rising and the demand for the silicon was growing. Nowadays, with the development of connected cars, drones, and IoT technology, the demand for modern silicon has never been bigger. And the fact that only a handful of companies can mass-produce cutting-edge chipsets certainly doesn’t help Sony.