By Dhirendra Tripathi
Investing.com – Sony (NYSE:SONY) shares were up nearly 2% following comments by a top company official that showed demand for PlayStation 5 stays high, though the supply of the popular video game console may fail to match it.
“I don’t think demand is calming down this year and even if we secure a lot more devices and produce many more units of the PlayStation 5 next year, our supply wouldn’t be able to catch up with demand,” the company's chief financial officer Hiroki Totoki said.
Totoki said the company has sold more than 100 million units "and considering our market share and reputation, I can’t imagine demand dropping easily."
The Japanese company plans to almost double PS5 sales in FY22 (April-March) to 15 million units, up from 7.8 million in the last financial year.
Companies like Sony are struggling to meet demand for IT and consumer products that have chips in them due to a global chip shortage.
With Covid-19 leading to s surge in demand for WFH devices and also industry shifts happening in green energy, renewables and automobile sectors, demand for smart devices and chips have boomed, causing supplies to lag. This is exacerbated by overall capacities being limited, lack of raw materials and capital-intensive nature of the chip industry.