Sony lowers forecast for PS5 gaming sales in 2022

At the end of its fiscal year in May, Sony was fairly bullish on gaming sales, predicting sales of 18 million PlayStation 5s for 2022 after selling 11.5 million in 2021. The company also expected a “significant” revenue increase in its gaming division over 2021 due to a boost across “all categories.”

In its latest earnings drop, however, the company has revised its profit forecast down by 16 percent from 305 billion yen ($2.3 billion) in May to 255 billion yen ($1.9 billion), “due to an expected decrease in sales of first party titles,” it wrote. The company also chalked up the drop in revenue to higher expenses due to its acquisition of Bungie Studios closing earlier than expected. 

Sony didn’t say anything about its PS5 console forecast, but it sold 2.4 million units this quarter compared to 2.3 million in the same quarter last year (21.7 million units to date). That means it must sell over 5 million units on average for the next three quarters to meet its May forecast — something it has never done before. In May, however, Sony said that it will finally be able to ramp up production to meet PS5 demand as supply chain issues ease — though as it stands now, the consoles are still in short supply. 

On the software side, things also went south as Sony sold just 47.1 million titles, including 6.4 million first party games, compared to 63.6 million titles and 10.5 million first-party games in the same quarter of 2021. On top of that, PlayStation Plus users dropped slightly from Q4 (47.3 million instead of 47.4 million), and monthly active users also dropped from 106 to 102 million. Sony introduced the new higher-priced PS Plus Extra and Premium tiers in June, but it has yet to reveal the impact of those — hopefully, we’ll learn more next quarter.

Looking ahead, Sony has a few major titles on the horizon that could perk up software sales, including God of War Ragnarok coming November 9th, and The Last of Us Part I remake arriving on September 2nd. On the hardware side, the PSVR 2 has been revealed but isn’t expected to arrive until next year.  

The next quarter will be a lot more interesting for Sony’s gaming division, as PS5 sales will show if it’s been able to ramp up production. Game sales will also be notable, as the steep drop this quarter bodes ominously for the industry as a whole. 

Update 7/29/2022 10:34 AM ET: The post has been updated with information that Sony has sold 21.7 million PS5s to date, not 21.4 million.

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Nintendo Switch holiday stock shortage likely as company revises forecast

Ongoing chip shortages have impacted a number of consumer products, not the least of which is the Nintendo Switch. A recent report from Nikkei Asia claimed Nintendo has been forced to slash its production targets for the fiscal year ending in March 2022, which is bad news for anyone hoping to pick up a Switch OLED model for the holidays.

READ: Nintendo Switch Review

After the Nikkei report dropped earlier this week, a Nintendo spokesperson said the company was “assessing” the chip shortage’s impact on its business, though the statement didn’t go so far as to confirm any changes in its forecast.

Fast-forward to November 4 and a newly published Nintendo document titled “Notice of Full-Year Financial Forecast Modifications” that details a revision of the company’s outlook for the remainder of its fiscal year. According to the document, the reason for Nintendo’s forecast change is “based on the impact of Nintendo Switch hardware production” caused by the chip shortage, as well as “sales performance of Nintendo Switch software.”

Holiday shortages?

The forecast change all but confirms the news from earlier this week regarding chip shortages and related Switch production issues. What does that mean for the average consumer? Issues getting one of the new Nintendo Switch OLED models will likely persist through the holidays, particularly as demand increases and people move quickly to buy units before the Christmas shopping season is in full swing.

If you were hoping to get yourself or someone you care about a Switch, particularly the new OLED model, for the holidays, it seems like the best plan going forward is to shop early and keep an eye on inventory levels at your preferred retailers. Waiting until the last minute to pick up a Switch may result in waiting weeks past the holidays before it arrives, and no one enjoys getting an order confirmation under the Christmas tree.

Multiple options

Which Switch model should you buy? It may be easier to your hands on the Switch Lite if you’re desperate for a console, but think hard before making the jump. Though the Switch Lite is cheaper and easier to find, it also lacks some key features found on the larger models, particularly the ability to dock the console and play games on a TV.

Beyond that, Nintendo has officially released the Switch OLED model, which brings an improved display compared to the Switch model released a few years ago. If you’re planning to invest in Nintendo’s Switch ecosystem, there’s no good argument against springing for the Switch OLED (cost aside). This latest and greatest model packs a 7-inch OLED screen, “enhanced audio,” the companion dock with a LAN port, and 64GB of internal storage.

Check out SlashGear’s Nintendo Switch OLED review roundup for a variety of perspectives on the new model, as well as our 2017 Switch review (above) and an editorial on some key reasons you may want to avoid the Switch Lite.

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Nintendo lowers its Switch sales forecast due to global chip shortage

Nintendo has cut its Switch sales forecast due to ongoing semiconductor shortages, the company announced in its earnings report. It now expects to ship 24 million Switch units for the fiscal year ending March 31, 2022 instead of the 25.5 million units it had originally predicted. 

The issue came into focus this quarter, as Nintendo managed to ship just 3.83 million Switch consoles compared to 6.86 million during the same quarter last year. So far, its net sales for the year are down 18.9 percent to 624.2 billion yen ($5.46 billion) year-over-year. 

That’s not a huge surprise, however, as Switch and software sales exploded during the COVID-19 lockdown and following that has proved to be impossible — particularly as chips and components have since become more scarce. Today’s numbers don’t include any sales of the Switch OLED, as the earnings only provide data up to September 30th, a full week before the updated console arrived.

Despite the revised sales expectations, Nintendo expects to match total revenue of 1,600 billion yen ($14 billion) from the previous fiscal year, thanks in part to games. It aims to sell 200 million software units, 10 million more than last year, which would help offset the console sales drop. Upcoming titles include Pokémon Brilliant Diamond and Shining Pearl plus a Zelda-themed Game & Watch.

The most popular games so far this fiscal year include Legend of Zelda: Skyward Sword (3.6 million units sold), Mario Kart 8 Deluxe (3.34 million units) and Animal Crossing: New Horizons (2.22 million units). The launch of Metroid Dread came after the earnings period Nintendo is reporting today.

Despite the reduced expectations and tepid console sales this quarter, Nintendo has now sold 92.87 million Switch units to date. That’s still short of the Wii, which has the company’s current home console sales record of 101.63 million units shipped. However, if Nintendo comes close to matching the 11.57 million units sold during last year’s holiday period, the Switch — aided by the new Switch OLED model — could finally top that mark by the end of the year. 

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Nvidia now expects Q1 sales to pass $5.3B forecast

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(Reuters) — Nvidia’s first-quarter revenue will be above its earlier forecast of $5.3 billion, the chipmaker said on Monday, as it benefits from strong demand for chips that power datacenters and cryptocurrency mining.

The company’s shares, which rose on the back of a slew of product announcements during the session, were trading nearly 6% higher.

Demand for Nvidia’s gaming graphic chips has soared during the COVID-19 pandemic, but the bigger boost to its sales has come from an aggressive push into artificial intelligence chips, which handle tasks such as speech and image recognition in datacenters.

“While our fiscal 2022 first quarter is not yet complete, Q1 total revenue is tracking above the $5.30 billion outlook,” chief financial officer Colette Kress said in a statement.

Nvidia’s unit that supports cryptocurrency mining is now expected to report sales of $150 million in the quarter, up from the previous forecast of $50 million, the company said.

Supply and demand

Nvidia’s upbeat forecast comes as the chip industry continues to reel from a global shortage of components, disrupting the wide-scale manufacturing of products, including vehicles and smartphones.

“We expect demand to continue to exceed supply for much of this year,” Kress said.

Earlier on Monday, Nvidia said it was planning to make a server processor chip based on technology from Arm, putting it in the most direct competition yet with rival Intel.

Reporting by Munsif Vengattil in Bengaluru, editing by Ramakrishnan M. and Anil D’Silva.


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