Sony Extending PS4 Production Due to PS5 Shortages

Adeyemi Matthew 

The Sony Group will continue to produce PlayStation 4 consoles throughout 2022 as it grapples with global supply chain disruptions that have limited production of its more expensive PlayStation 5.

The Japanese conglomerate, whose flagship PS5 console has been scarce since its debut in November 2020, told its assembly partners late last year that it would continue to manufacture its previous-generation machine until this year. , according to people familiar with the matter.

While Sony has never officially announced when it will stop manufacturing the PS4, it previously planned to halt assembly in late 2021, they said, asking not to be named as the plans are not public.

The strategy would add around one million PS4 units this year to help offset some of the pressure on the company’s PS5 production, a figure that will be adjusted in response to demand, people said. The older console uses less advanced chips, is simpler to manufacture, and offers a cost-effective alternative to the PS5.

Increasing production orders by adding the cheaper-to-manufacture PS4 would also give Sony more leeway when negotiating with manufacturing partners for a better deal, two people said.

A Sony spokesperson has confirmed that PS4 production will continue this year and said the company has no plans to stop manufacturing the console. “It’s one of the best-selling consoles of all time and there is always a cross between the generations,” the company said.

Sony’s ambition with the PlayStation 5 was to make a swift transition to the latest hardware, said PlayStation chief Jim Ryan.

But the coronavirus pandemic has slowed software development in the games industry while triggering an increase in demand for hardware that has made even the most basic components scarce. The result has been a console that’s hard to find and lacks a solid portfolio of must-have exclusive games.

The predecessor PS4, released in 2013, has sold over 116 million units to date and remains a popular option among gamers. It still provides a substantial portion of Sony’s gaming division revenue from subscriptions and software sales. The PlayStation unit is grappling with a series of unforeseen challenges, including a slower-than-expected PS5 production pace and online scalpers choking off retail supply for the new console.

Expanding the availability of the PS4 is seen within the company as a way to fill the supply vacuum and keep gamers within the PlayStation ecosystem, according to a Sony official who is not. allowed to speak in public.

Among the most significant bottlenecks in the supply chain are inexpensive general purpose chips for audio, power and wireless communication functions. Some console makers have found that even offering a higher price won’t guarantee supply for these components, as all current production has already been sold, according to people.

Even with completed consoles, distribution re mains a challenge as shipping costs have risen sharply. While gaming remains Sony’s main source of revenue, the Japanese electronics giant is exploring new areas to support its growth. It is getting ready to release more powerful virtual reality headsets to enjoy future games and apps in the so-called metaverse and plans to launch its own electric vehicles.

January 12, 2022