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PS5 Shortage Causes Sony to Continue Making PS4s

Amid continued PS5 shortages, Sony has decided to continue PS4 […]

The post PS5 Shortage Causes Sony to Continue Making PS4s appeared first on PlayStation LifeStyle.

PS5 Shortage Causes Sony to Continue Making PS4s

Amid continued PS5 shortages, Sony has decided to continue PS4 production in order to counter supply chain issues. Sony’s decision to continue production of the last-gen console stands in stark contrast to earlier statements, in which CEO Jim Ryan wished to make a “quick transition” to the PS5. While Sony had not officially announced any plans to completely end production of the PS4, an anonymous insider reveals that they had considered doing so by the end of 2021.

Why Make More PS4s and Not PS5s?

If you’re thinking “wait, why make more PS4s if there’s a shortage of PS5s?” you’re not alone. Essentially, Sony is trying to offset demand for the PS5 by producing more PS4s. A million more within 2022, to be exact. Not only is the PS4 simpler to make and uses less advanced chips, but it’s also seen as a budget-friendly console that could serve as an alternative to the difficult-to-buy PS5.

The increase in production also serves a second purpose: negotiating better deals with manufacturers. Rather than attempting to negotiate prices for a comparatively small amount of PS5s, Sony can essentially negotiate for bulk-buy prices by including an additional million PS4s in their manufacturing deals.

Speaking to Bloomberg, a Sony representative confirmed that the company would continue manufacturing the PS4 in 2022. Just a year ago, Sony also stated that it would end production of all but one version of the PS4.

In other news, Xbox Head Phil Spencer has recently expressed interest in cross-platform bans for abusive PlayStation and Xbox players. Former Bend Studio head Jeff Ross revealed further details about the Days Gone sequel that could have been.

[Source: Bloomberg]

Source: https://www.playstationlifestyle.net/2022/01/12/ps5-stock-shortage-sony-ps4/

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