Sony (NYSE:SNE)’s PlayStation 5 (PS5) and Microsoft Corporations Xbox Series (XS) are likely to be a rare sight under Christmas Trees this year, according to stockbroker Shore Capital, which reckons consumers will be forced to seek out alternative gifts.
It is nearly a year since the latest PlayStation and Xbox console’s were launched, supplies continue to be tight and demand from consumers has yet to be satisfied.
The boom in gaming during the pandemic was one factor whilst supply has also been hampered by a semi-conductor shortage as well as logistical distribution problems.
Despite the issues, the PS5 became the UK’s fastest selling PlayStation console, surpassing 1mln sales by August. The console is estimated to have sold 13mln globally.
For context, at the same time the PS5 was also the top selling console by units sold which broke Nintendo’s 33-month streak (normally, the considerably more affordable Nintendo Switch sells more units, but Playstation leads the industry in terms of total sales value).
Demand is expected to remain high over the busy holiday period and into 2022, given that PS5 stock still sells out instantly whenever it becomes available.
Shore Capital reckons the lack of Playstation consoles could be good news for Nintendo in particular as consumers look for alternative Christmas presents this year.
The broker also expects non-video game consumer technology will be another option for buyers, such as laptops and smart phones.
More specifically, Shore Capital reckons it could be good news for reCommerce specialists musicMagpie Plc.
The AIM-quoted firm – which buys and sells game consoles, as well as games, mobile phones, laptops and technology – offers a more affordable price for high demand items, said Shore (which is house broker to the second-hand retailer).
Analyst Katie Cousins, in a note, noted that those companies are platform agnostic and most of their new content is launched across all popular hardware.