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Sony PS5 supply constraints lead to 14% hardware sales drop from prior year's quarter

While hardware sales have decreased, Sony reports an increase in digital software sales.


With the success of Sony’s PlayStation 5 and the company’s wealth of legendary first-party titles, its quarterly earnings are always of interest. Though Sony continues to see an increase in network services and digital software and content sales, it has noted a decrease in hardware sales which has been chalked up to supply constraints.

sony q4 2021 earnings report

On May 10, 2022 Sony released its Q4 2021 financial results on its Investor Relations site. Within the FY2021 Consolidated Financial Results, Sony showed that it has seen a drop in hardware sales compared to the same quarter of the previous fiscal year.

Despite selling the hardware at a loss, the production cost efficiency has increased. Further helping Sony’s earnings is an increase in the digital software and DLC sales, which has helped offset the loss. In saying this, Sony noted that third-party sales decreased.

Also revealed in the financial reports is that Sony’s results missed expectations while the company also announced a 200 billion yen buyback. This seems to indicate confidence in the stock’s valuation. Be sure to check out the Shacknews Stock Market and Finance pages for more information on Sony and other companies in the video game industry.

Guides Editor

Hailing from the land down under, Sam Chandler brings a bit of the southern hemisphere flair to his work. After bouncing round a few universities, securing a bachelor degree, and entering the video game industry, he's found his new family here at Shacknews as a Guides Editor. There's nothing he loves more than crafting a guide that will help someone. If you need help with a guide, or notice something not quite right, you can Tweet him: @SamuelChandler 

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