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Sony is said to lower the PS5 target by 4 million due to Chip Woes

The Sony PlayStation 5.

Sony Corp. has reduced its estimated PlayStation 5 production for this fiscal year by 4 million units to around 1

1 million after production problems with the system-on-chip developed specifically for the new console.

The Tokyo-based electronics giant in July Increasing orders from suppliers in anticipation of increased demand for games during the holiday season and beyond as people spend more time at home due to the coronavirus. However, the company has encountered manufacturing issues, such as production yields as low as 50% for its SOC, which has limited the ability to produce as many consoles as it wishes, said people who wanted to remain anonymous because of the considerations are not public. Yields have gradually improved but have not yet reached stable levels, they added.

Sony shares made gains and fell as much as 3.5% on the news. This was the largest daily decline since August. A Sony spokesman declined to comment.

Close rival Microsoft Corp. announced aggressive pricing for its two next-generation consoles at $ 299 last week Xbox Series S and $ 499 Xbox series X.This increases the pressure on Sony. Pre-orders for the new Xbox models will begin on September 22nd. Sony is widely expected to announce its own launch and pricing plans for the PlayStation 5 during an official video presentation scheduled for Wednesday. The full PS5 console may only cost $ 449, while the slimmer digital-only version can drop under $ 400. According to Masahiro Wakasugi, an analyst at Bloomberg Intelligence.

Continue reading: Sony is said to limit the PlayStation 5 edition in the first year

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