Sony Corporation’s (NYSE: SNE) PlayStation5, which is only available online, has sold out on major sites in Japan after the company launched the console Thursday, Reuters reported.

Why It Matters: Retailers in Japan are holding draws to sell the PS5, priced between $400 to $500, as stock is limited, according to Reuters.

The consoles are reportedly on sale for more than $900 at Mercari Inc’s flea market platform in the island nation.

The PS5 was launched in the United States, Japan, Canada, Mexico, Australia, New Zealand, and South Korea on Thursday.

The device features Apple Inc (NASDAQ: AAPL)’s TV app, which also gives access to the company’s $4.99 per month TV+ streaming service.

Why It Matters: Analysts have predicted shortages of both Sony’s console and Microsoft Corporation’s (NASDAQ: MSFT) recently launched Xbox running into 2021, Reuters reported.

The demand has reportedly ratcheted up as consumers take to gaming amid the COVID-19 pandemic.

The two devices have garnered strong sales since pre-orders opened in September, which have put pressure on supplies, according to Bloomberg.

PS5’s predecessor sold 113 million units and made gaming the most important unit of Sony’s sprawling business, as per Bloomberg.

Sony Chief Financial Officer Hiroki Totoki revealed in a private conference call with analysts in October that the PS5 was facing production logistics bottlenecks and that the company would have ramped up its sales goal had it been able to meet the demand.

Sony said it would sell 7.6 million units by the end of March 2021, which is the amount the PS4 sold in the first fiscal year of its debut, Bloomberg reported.

Price Action: Sony shares closed nearly 2.5% higher at $88.09 on Wednesday and fell 0.33% in the after-hours session.

Photo courtesy: Sony Corp.

 

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