Sony Corp. has reduced its estimated PlayStation 5 production for this fiscal year by 4 million units to around 1
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
Sony started the year with conservative manufacturing Plans for the PS5, and it has grappled with how to evaluate the upcoming console update. The Covid-19 pandemic resulted in an upward revision of the company’s projections as the PlayStation Plus subscription service was the fastest to roll out and record sales were achieved from the summer releases The Last of Us: Part II and Ghost of Tsushima.
Nintendo Co. is planning one The updated version of the Switch console, which comes with better components and potentially 4K output, for 2021. It is expected to be accompanied by a number of new popular games that will challenge the efforts of Sony and Microsoft to get more gamers for their services to win.
(Updates with stock price reaction in the third paragraph)