PS5 for sale: Good news and bad for buying PlayStation 5 stock
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PS5 stock updates are coming this week in the UK and the United States, but there are still many challenges.
Not only does it remain difficult to snag a console during PlayStation 5 restock events, but computer chip shortages means that demand continues to outstrip supply.
So while more PS5 stock is coming to the UK from the likes of Game, Currys, Very and Amazon, the numbers are expected to stay limited.
The latest on the situation was shared by Neil Campling, a tech analyst at Mirabaud, who revealed the challenges facing a number of well-known companies and industries.
Covering chip shortages across industries, Campling told The Guardian: “Chips are everything.”
He added: “There is a perfect storm of supply and demand factors going on here. But basically, there is a new level of demand that can’t be kept up with, everyone is in crisis, and it is getting worse.”
“There is no sign of supply catching up, or demand decreasing, while prices are rising across the chain.
“This will cross over to people in the street. Expect cars to cost more, phones to cost more. This year’s iPhone is not going to be cheaper than last year.”
The same price problems are not expected for the PS5 and Xbox Series X, which are expected to stay the same in 2021.
We already know that Sony sells the PS5 at a loss, and this is the same situation since its launch back in November 2020.
But while Sony is losing money on each console sold, it’s essential that as many next-gen machines are shipped as possible each year.
As spelt out by Motley Fool in a recent report, software sales are key to the PlayStation 5’s longevity, explaining:
“Console makers usually offset their hardware losses with software sales. For each physical video game sold at $60, the publisher retains about $27, the retailer keeps $15, the platform operators (such as Sony and Microsoft) earn $7, and the remaining $10 is split between other parties.
“Sony and Microsoft both publish first-party games and distribute them on their own digital download platforms, which allows them to retain the publisher, retailer, and platform operator revenue. They also retain nearly a third of the revenue from third-party games sold on their digital stores.
“Therefore, Sony and Microsoft only need each gamer to buy a few games to offset their initial hardware losses. That’s why Sony is willing to take a steeper loss on each PS5 Digital Edition — which it can easily recoup by selling more digital games.
“Meanwhile, manufacturing costs for consoles generally decline each year, which makes it easier to lower the price of the original console, launch cheaper versions, or sell more powerful versions at similar prices.”
Meanwhile, the latest PS5 restock expected to drop between, March 29 and April 2 in the UK.
A message from one reliable stock tracker account suggests there will be several drops between now and early April, with PS5 Instant confirming on Twitter:
“GAME stock coming fast, drop may arrive for next week. Currys selecting more via priority pass. Very, JL & Amazon drop next week.”
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