Please ensure Javascript is enabled for purposes of website accessibility

Despite COVID-19, Sony's PlayStation 5 Will Be Ready for the Holiday Season

By Donna Fuscaldo – May 13, 2020 at 2:59PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Sony said it isn't seeing any major issues with game software development pipelines.

Sony (SONY 2.16%) expects its PlayStation 5 to be ready for the holiday shopping season despite issues brought on by the COVID-19 pandemic. 

In reporting fiscal fourth-quarter earnings on Wednesday, the Japanese entertainment company said that even though it faced challenges in testing and the qualification of production lines, due largely to employees working from home and restrictions placed on international travel, its newest game console is still on track for a launch during the holiday shopping season.

A woman and a boy sitting on a couch playing a console video game


As for game development, Sony said it's not seeing interruptions. In April the company said it was delaying The Last of Us 2, one of the most anticipated game titles of 2020, because of logistic issues. However, Sony said in its earnings report that "at this point in time, no major issues have arisen in the game software development pipelines of either our in-house games or those of our partners."

Sony's PlayStation 5, the first game console in seven years for the Japanese company, is expected to go up against Microsoft's Xbox X. The holiday selling season is an important period for both companies. There have been concerns that both devices wouldn't be ready in time for the holidays because of the pandemic, but Microsoft quelled that speculation in late April when it said Xbox X won't be delayed but cautioned new game titles may be. 

As for the PlayStation 4, Sony said while production has been "slightly" hurt by supply chain issues for some components, it continues to meet demand in the near term and sales for the game console are "trending well." Revenue from its PlayStation network has surged as people shelter in place and turn to video games for entertainment. "Game play hours on the PlayStation Network ('PSN') have reached 1.5 times that of the Christmas season and sales of games downloaded from the network, as well as network subscriber numbers, have increased significantly since March," Sony said.

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Donna Fuscaldo has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Microsoft and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Sony Corporation Stock Quote
Sony Corporation
$67.59 (2.16%) $1.43

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.