Sony Corporation has cut its projected 5 production for this fiscal year by 4 million units, to around 11 million, given production issues with custom-designed system-on-chip for the new console. .
Tokyo-based electronics giant in July Orders were extended with suppliers to meet the increased demand for gaming during the holiday season and beyond, as people spend more time at home due to coronovirus. But the company has come up against manufacturing issues, such as production yields down to 50% for its SoC, cutting its ability to produce as many consoles as it wishes, people said, who remain anonymous. Asked for because discussions are not public. He said that the yield is improving gradually but it is yet to reach a stable level.
Sony shares rose in the wake of the news and were down 3.5%, their biggest intra-day decline since August. A Sony spokesperson declined to comment.
Close opponent Microsoft Corp last week revealed aggressive pricing for its two next-generation consoles, $ 299 Xbox Series S and $ 499 Xbox series X, Putting additional pressure on Sony. Pre-orders for the new Xbox models begin on September 22. Sony is expected to reveal its own launch and pricing plans for the PlayStation 5 during an official video presentation scheduled for Wednesday. Full PS5 consoles can cost as little as $ 449, while the slimmer digital-only version can dip below $ 400, According to Bloomberg Intelligence Analyst Masahiro Wakasugi.
Read more: Sony has said to limit PlayStation 5 production in its first yearSony started the year with conservative manufacturing Plans for the PS5, and it is battling how to refresh its upcoming console. The company’s estimates improved due to the Kovid-19 epidemic, as it rapidly adopted its PlayStation Plus subscription service and scrapped final sales from summer releases: Part II and the Ghost of Tsushima.
Nintendo company plans The upgraded version of its Switch console is equipped with improved components and a possible 4K output for 2021. It is set with a slate of new big-name games, challenging Sony and Microsoft’s efforts to get players to sign up for their services.
(Updates with share price response in the third paragraph)