We have officially come to PS5 first year, an interesting moment to evaluate the current situation regarding the presence of consoles on the market, but not only. The technology sector is speaking to us loud and clear and this is not positive news: the world semiconductor crisis is undermining stability and the total recovery of this environment, in all respects, but why is this happening?
In today’s editorial, our aim will be to observe not only the past year – with the necessary conclusions – but also to look to the future. Cars, tech and gaming are industries plagued by a period of enormous demand that cannot be met and, according to current perspectives, it may take a while longer to find an effective balance. So, when will we be free to actually have PS5s “at hand”? Let’s discuss it together.
The premises: “the hunt for gold” aka semiconductors
The complaints from players have been going on for a year now and the reality is that they are not senseless: the problem now is not having money to buy the next gen console but just being able to find it in stock, which is why the assaults on periodic bundles are the basis of everyday life in an attempt to be able to grab a PS5. But – as we have already briefly explained in the introduction – we need to contextualize much more, before complaining. The market condition is critically poisoned by this lack of semiconductors without which machines, consoles, mobile phones, PCs, many other accessories from the gaming world and beyond, cannot work: a terrible but real paradox, the crisis of these units is able to terminate or seriously slow down the production of countless products .
What are these fundamental components? Let’s see it briefly before understanding why they almost disappeared from the market during 2020/2021 (and probably also for a good part of 2022). Semiconductors are the electronic circuits, translated into a few explanatory words, correspond to the real structure that allows the functioning of all that is technological, a fundamental unit for a product with electronic elements inside it, from a Huwaei mobile phone to a beautiful Yundai. But why, if they are so important, has an unprecedented world crisis erupted? The answer is – unfortunately – simple and in part linked to the pandemic period which has upset all the parameters, in fact creating not a little confusion even on the part of producers.
During the most catastrophic period of 2020, sales forecasts have been radically reduced, which means that far fewer units were produced thinking they would not be needed. In fact, however, not only has the demand not decreased but rather, with the pandemic in full development and the birth and growth of smart working there has been an even greater demand: a real catastrophe which, piece by piece, has become less and less recoverable. Obviously everyone ran to grab as many semiconductors as possible: not only were there few to share among the large companies (Sony And Microsoft for example, referring to the brands of the coveted next gen consoles), but also for all the others it was the end.
Small companies have ceased to have material and even the likes of Yundai, Toyota, Stellantis, Ford and Honda have complained of significant slowdowns across their entire production; the huge shortage of circuits in the automotive industry, in fact, is among the most significant factors in the current market, alongside the tech one in general. And so here is the first explanatory answer to all those who treat the lack of PS5 superficially, in a world that is sipping the circuits paying very, very dearly for them. This is the origin of everything.
A look at tomorrow: many PS5s… or maybe not?
After we have actually contextualized the global situation, let’s take a step forward and let’s go back to focusing on consoles as well as on the semiconductor crisis. We take as a reference the data during these 365 days: according to the current analyzes, at the end of March PlayStation sales hit the 7.8 million mark consoles, which correspond to the total achieved in 2020; a very different number from the 14.8 million units sold in PS4’s first year, and not because the public isn’t actually interested. The demand remains very high and indeed, it will be very difficult to be able to dispose of it as soon as possible: the stores around the world speak of an exhausting, tireless demand for PS5 all over the world and the continuous attacks on the few consoles put into circulation periodically clearly demonstrate this to us. As well as the fact that – despite almost half of the units produced in a year and much more slowly, unevenly – purchases have always skyrocketed, sometimes even relying on retailers.
In short, everyone wants this PS5 but few have it: a videolduic drama that we would not have expected but that has landed on our heads in an irreparable way. The figures speak for themselves, unless a direct, and highly hoped for, miracle occurs over the next couple of months, it will continue to take at least throughout 2022 so that the crisis has effectively been amortized from the sector, arriving at the usual sales numbers; not a heartening confirmation, that’s for sure. Sony CFO himself, the authoritative Hiroki Totoki, openly showed his concern stating that demand will remain very high and production will lag behind for quite a while. Despite this, however, it seems that Sony is actually doing everything possible to have the chips necessary to meet its sales targets during the current fiscal year: so maybe there is a glimmer of hope? Can we believe in growth, perhaps gradual, that will allow us to overcome the semiconductor crisis?
No doubt the attempt of the companies, including the Japanese giant, it is precisely that of being able to overcome the enormous rock with all their strength, even at the cost of paying the semiconductors their weight in gold (so to speak). The actual answer to this question is that the big brands are focusing all their strength on solving this complex crisis and obstacle to the market but – despite this – the last word will be given by numbers themselves over the next few months. We just have to wait.
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