Sony has reportedly cut its estimated PS5 production for its fiscal year by 3 million units, bringing the new total to around 11 million, following “production issues with its custom-designed system-on-chip for the new console.”
As reported by Bloomberg, Sony had boosted orders with suppliers in “anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the coronavirus.” However, these manufacturing issues are causing “production yields as low as 50%” for its system-on-chip, which have hindered its ability to produce as many PS5s as planned.
Bloomberg’s sources did mention that yields have been “gradually improving” but they have yet to reach a stable level.
Sony’s shares dropped by as much as 3.5% following this news, which is its biggest intraday drop since August.
Daniel Ahmad, a senior analyst at Niko Partners, has stated that this production delay will “hit PS5 supply during 2021,” and Sony is planning on using Air Freight to “meet demand this holiday and ship as many units as possible in the launch period.”
Ahmad notes that “production yield issues will always exist, especially at the beginning of a console launch, though this does seem more severe than expected.”
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This news follows both Sony’s announcement of its PlayStation 5 Showcase event this Wednesday, September 16, and Microsoft revealing both the price and release date of the Xbox Series X and Xbox Series S.
We have yet to learn the price and release date of the PS5, but we now know that the Xbox Series X and Xbox Series S will cost $499 and $299, respectively. Bloomberg’s intelligence analyst Masahiro Wakasugi says the PS5 could be priced as low as $449, while the PS5 Digital Edition could possibly “dip below $400.”
If we do learn the price and release date for the PS5 this Wednesday, we will keep you up-to-date with our PS5 preorder guide.
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