Sony has presented its fiscal results, and the figures do not inspire optimism. PlayStation 5 sales plummeted 46% compared to the previous year, with only 1.5 million units moved in the quarter. The Japanese company directly points to the global memory shortage as the main culprit, a problem that has driven up production costs and forced two price increases in less than twelve months, the latest being $100.
Memory shortage squeezes production margins 📉
The supply crisis of DRAM and NAND memory chips continues to affect the video game industry. In the case of the PS5, the lack of these components has notably increased the manufacturing cost of each unit. Sony, which was already operating with tight margins due to the console's custom hardware, has been forced to pass that extra cost on to the end consumer. The strategy of raising the price has failed to offset the drop in sales volume, as demand suffers when the product exceeds certain psychological price thresholds.
Memory takes a vacation and leaves the PS5 in the lurch 😅
It seems RAM has decided to take a sabbatical year, and Sony is footing the bill. Raising the price twice in less than a year is like trying to plug a hole in a boat with a piece of gum: it works for a while, but the water keeps coming in. While chip manufacturers rub their hands together, gamers look at their wallets and wonder if the PS5 isn't more expensive than a trip to Mars. At least the SpaceX rocket includes a free snack bar.