PlayStation and Switch sales suffer as the console war continues

The actions of Sony Y Nintendo, manufacturers of PlayStation Y switch respectively, fell on Thursday when the two Japanese giants cut their sales forecasts for the consoles.

The drop comes as both companies grapple with the ongoing global chip shortage, and just weeks after the chipmaker Xbox, Microsoft, announced plans to acquire ActivisionBlizzard in a blockbuster deal worth nearly $70 billion.

Sony on Wednesday lowered its forecast for the popular PlayStation 5, saying it expected to sell 11.5 million units in the fiscal year that ends in March. That’s less than the 14.8 million units previously forecast.

The company’s shipments and guidance cut were “disappointing,” said Kazunori Ito, director of Morningstar.

The console war intensifies.

Meanwhile, Sony’s overall gaming and network services unit also posted an 8% drop in sales for the quarter ending December, compared to the same period a year earlier.

The company’s shares fell 6% in tokyo on Thursday, despite broadly beating analyst forecasts.

The group’s earnings were largely attributed to its film and television division, including “licensing revenue from the comedy series Seinfeld and the success of the latest film from Spider-Man”, Nomura analyst Yu Okazaki wrote in a note on Wednesday.

On Thursday, Nintendo also said it could continue to experience global supply chain issues this year.

The giant based in Kyoto once again lowered its sales forecast for Switch, which was a huge success early in the pandemic.

It now expects to sell 23 million units by the end of the fiscal year, which ends in March, down from previous projections of 24 million and 25.5 million units last November and May.

Nintendo shares closed down 2.8% on Thursday, before the filing.

But the company’s overall results were in line with expectations, according to Ito.

Shipments of Switch consoles were “not as bad” as the market feared, he told CNN Business.

There were also some bright spots. Nintendo raised its forecast for software sales by 10% through March, to 220 million units.

That side of the business has proven “robust” and generates the bulk of Nintendo’s profits, even allowing it to raise its overall financial forecast for the year slightly, Ito noted.

Console war between PlayStation, Xbox and Switch

In addition to the drop in sales of PlayStation Y switch analysts have warned that the sale of ActivisionBlizzard to microsoft could pose a serious threat to Sony, who has competed with Xbox during decades.

With Activision Blizzard, Microsoft would add popular series like “Call of Duty” Y “World of Warcraft” to your library, as well as the nearly 400 million monthly active players that accompany them.

However, this week, Sony made headlines by announcing the acquisition of Bungie, the developer known for creating titles like “Halo” Y “Destiny”.

The deal would help Sony bolster its intellectual property and make its “gaming business more competitive” overall, Nomura analysts wrote in a note Tuesday.

Meanwhile, Nintendo is expected to be more protected from competition concerns related to Activision Blizzard because “people who want to play Nintendo games buy Nintendo hardware,” Ito added.

“Therefore, Nintendo can [todavía] differentiate your platform from others.

In AmericanPost.News We will follow the latest news from PlayStation as he assured that God of War: Ragnarok will be released this 2022.

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