Sony Cuts Production of PS5 by 4 Million Units [Updated With Sony Response]

Sony has had to make cuts to their production of the PS5, months after increasing estimates in anticipation for a busy holiday season. This comes in the midst of speculation regarding the final unit price, as well as some strong competition from competitor, Microsoft.

Sony Cuts Production of PS5 by 4 Million Units

Update: Sony has denied that a reduction took place in a statement to GamesIndustry.biz:

“While we do not release details related to manufacturing, the information provided by Bloomberg is false,” the statement reads. “We have not changed the production number for PlayStation 5 since the start of mass production.”

Original story: Sony Corp. has reportedly cut PS5 production by 4 million units, Bloomberg reports. This brings their fiscal year estimation to around 11 million units, a steep decline brought on by production issues with a proprietary chip.

In July, Sony had increased orders with suppliers, expecting a larger demand this holiday season due to consumers being home more often due to the global COVID-19 pandemic. Unfortunately, it seems that there have been manufacturing issues with the system-on-chip, resulting in production yields of only 50% of what was expected. Bloomberg’s sources on this matter are, at this time, anonymous. Sony declined to officially comment, and after Sony, shares closed down 2.4% on Tuesday, the lowest since July.

This comes shortly after Microsoft announced the pricing for Xbox Series S ($299) and Xbox Series X ($499), leading many to speculate that Sony will announce launch information and pricing for the PS5 during their showcase event on Wednesday. Bloomberg Intelligence analyst Masahiro Wakasugi speculates that PS5 pricing at the lowest may run $449 for a full console, with a digital-only model could run $399.

Future of Gaming - Closing Sizzle Trailer | PS5

2020 has been a year of ups and downs for Sony, who has been trying to hammer down the ideal price for their new home console. Initially, the company’s plans for unit production were more conservative. During the pandemic, the company saw record sales for The Last of Us: Part II and Ghost of Tsushima, as well as a higher than expected adoption rate of the PlayStation Plus service, causing them to reevaluate holiday estimates.

Keep your attention here on KeenGamer, as we’ll have more information regarding the PlayStation 5 after the Showcase Event.

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