Sony reduces its PlayStation 5 production forecast due to SoC issues

Remigio Civitarese
Settembre 16, 2020

In a report from Bloomberg Japan, it was suggested that Sony would be reducing the production numbers for the PlayStation 5.

The company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into its ability to produce as many consoles as it wishes, said the people, who asked to remain anonymous because the deliberations aren't public. The yields are improving but are now in an unstable state, as per the report.

Notably, when the news broke, it led to Sony's shares closing down 2.4 percent in response. A Sony spokesman declined to comment.

Earlier this year, Sony upped its PlayStation 5 production capacity, expecting high demand for it during the holidays season and for a few months afterwards, in part due to the ongoing pandemic. Problems with SoC yields aren't unusual by any means but it does mean that stock may be lower and each component may end up costing Sony more, affecting profit margins. Sony is widely expected to announce its pricing strategy tomorrow at a virtual event.

Microsoft has revealed the most important details of its Xbox Series X and Series S consoles, including the prices and release date. Pre-orders for the new Xbox models begin on September 22.

There will be a limited quantity of PS5 consoles available for pre-order, so we will be inviting some of our existing consumers to be one of the first to pre-order one from PlayStation.

According to Bloomberg Intelligence analyst Masahiro Wakasugi, the standard PS5 console could be priced at $449 and the digital version may launch below $400.

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