Supply woes faced by Microsoft Corporation (NASDAQ: MSFT) and Sony Corporation (NYSE: SNE), which have led to a scarcity of their newly launched consoles tanked sales of digital games, by 10% in the period between Black Friday and Cyber Monday, according to game research provider SuperData.
What Happened: Console-game revenue declined 13% during the sales holiday weekend, as gamers waited to purchase the newly-released Xbox and PlayStation 5 units, according to SuperData, Bloomberg reported Wednesday.
Overall game spending remains on track to set a record this year and PC games have helped mitigate the fall in sales of console games, as per the games research firm.
“Despite the lower numbers on Black Friday through Cyber Monday, spending on digital games is growing significantly this holiday season,” said SuperData principal analyst Carter Rogers.
“Even individuals who might have bought physical games at brick-and-mortar retailers in a normal year are opting for the convenience and safety of downloading games,” Rogers explained.
Why It Matters: Game makers, who can offer new features on just-released consoles, record higher sales after the devices hit the market but supply-chain obstacles can be an impediment, noted Bloomberg.
Analysts have predicted shortages for both the consoles extending into 2021 due to demand fueled by stay-at-home gamers.
Hershey said Sony could have the advantage due to exclusive titles such as “Spider-Man: Miles Morales” and “MLB The Show.”
Price Action: Microsoft shares closed nearly 0.4% lower at $215.37 on Wednesday. On the same day, Sony shares closed nearly 2.2% lower at $92.62 in New York.
Photo courtesy of Sony
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