Along with March ended another fiscal period on the Sony calendar, after which the company managed to sell just 11.5 million PlayStation 5 gaming consoles against an initial target of 14.8 million units. The forecast for the current financial year has been adjusted from 22.6 million to 18 million PS5 consoles, but even this number is not final.
According to Sony CFO Hiroki Totoki (Hiroki Totoki), referred BloombergThe company has had to lower its guidance for the current fiscal year due to the ongoing negative impact of the pandemic on supply chains, particularly in China, where a new wave of lockdowns has seriously complicated the work of companies that assemble gaming consoles for Sony. According to Sony’s CFO, the specified 18 million PS5 consoles are an optimistic option for assessing the company’s performance, and if the situation worsens, the forecast could be revised downwards. Again, 18 million consoles is roughly the production amount that Sony can source the necessary components for, Mr Totoki explained.
In the previous quarter, Sony more than doubled its local currency earnings to $1.06 billion. The company’s revenue from games and online services nearly tripled to $427 million. Sony expects earnings to fall 12% this fiscal year as it ramps up game development spending and plans to acquire Bungie Studios for $3.6 billion. The company’s operating income is likely to fall to $89 million this year, below analysts’ expectations. Sony will also be repurchasing about $1.5 billion of its own stock this year, which should give the stock a boost as it’s down 27% since the start of the calendar year.