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Sony is said to cut PS5 targets by 4 million due to chip issues

Sony is said to cut PS5 targets by 4 million due to chip issues

Following manufacturing issues with custom-designed system-on-chips for new consoles, Sony has reduced its estimated production of PlayStation 5 this year by 4 million units to about 11 million units. ..

Tokyo-based electronics giant in July Boost As people spend more time at home because of the coronavirus, we ordered from our suppliers in anticipation of growing demand for games after the holiday season. However, the company is facing manufacturing problems such as a low SOC production yield of 50%, reducing its ability to produce the required number of consoles, people who asked for anonymity for consultation. Said. Not published. Yields are improving gradually, but have not yet reached stable levels, they added.

Sony stocks fell on Tuesday, down 2.4% on Tuesday, the lowest level since July. A Sony spokeswoman declined to comment.

“If the news is accurate, we see the reduction as negative,” said Citigroup analysts, including Kota Ezawa, in response to Sony’s revised production target report. Analysts also pointed out that SOC yield challenges would increase component costs and squeeze profit margins. Sony’s lowered forecast is just a guide and may be revised by the end of March 2021.

Close rivals Last week, Microsoft Corp. unveiled aggressive pricing for two next-generation consoles, $ 299. Xbox Series S and $ 499 Xbox series XPuts additional pressure on Sony. Pre-orders for the new Xbox model will begin on September 22nd. Sony is widely expected to unveil its own launch and pricing plans for the PlayStation 5 during the official video presentation scheduled for Wednesday. The full PS5 console costs as low as $ 449, and the slimmer digital-only version can go below $ 400. According to Bloomberg Intelligence analyst Masahiro Wakasugi.

read more: Sony is said to limit the output of PlayStation 5 in the first year