Sony reportedly cut down estimates for PlayStation 5 production

The PlayStation 5 logo has been displayed on the smartphone in the illustration of this picture.

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SINGAPORE – Japan’s Sony shares fell after a report that the company was reducing projected production for its PlayStation 5 gaming console.

The stock lost nearly 1.8% on Tuesday morning, recovering from losses when it fell more than 3% in the first session.

Bloomberg cited people familiar with the matter as saying Sony had reduced its estimated PlayStation 5 production by 4 million units for the fiscal year. The report stated that the low outlook was related to production issues with custom-designed systems-on-chip (SoC) for consoles.

Bloomberg said the Japanese electronics powerhouse is facing manufacturing issues, with production yields down to 50% for its SoC.

CNBC did not immediately respond to Sony’s request for comment.

The latest development comes as Sony prepares for its next-generation console battle against Microsoft. Rival has recently released pricing details for its new Xbox console which are scheduled to launch in November.

Although Sony has not yet announced pricing details for the PlayStation 5, the PlayStation blog is teasing a showcase scheduled for Wednesday.