PS5 Shortage Drives Increased PS4 Production

Sony will continue to produce new PlayStation 4 units through 2022. The production was originally scheduled to end at the end of last year, but the company said that continuing it would help fill supply gaps and keep gamers in the PlayStation ecosystem. PS5's availability problems are due in part to the fact that manufacturing modern chips, a key component of the console, is much more difficult due to the pandemic. The older generation uses less advanced components, making it simpler to manufacture and providing a budget-friendly alternative to the PS5.

As PlayStation chief Jim Ryan said, Sony would have liked to focus all of its manufacturing power on the latest console, but the coronavirus pandemic has slowed production processes in the game industry, while increasing demand for hardware. This has made even the most basic components scarce. Sony hopes that producing more PS4s will ease the pressure on PS5. The company plans to produce about one million new PS4s per year, with a willingness to adjust the number of units depending on demand.

The PlayStation 4 is one of the best-selling consoles in history, with 116 million units sold to date. However, the platform was created in 2013 and after almost a decade, a switch to the new generation is necessary. Interestingly, while games remain Sony's biggest source of revenue, the company is also preparing to release a new VR kit to take advantage of future games and apps in the so-called metaverse, and is considering launching sales of its own electric vehicles.