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Sony Scales Down the PS5 Production by a Few Million

Sony scales down the PS5 production by a few million.

Sony has cut down its production estimates for its PlayStation 5 console by a few million units. Earlier, a Bloomberg report mentioned that the Japanese multinational conglomerate had plans to boost the production of its PS5 consoles by about 10 million units until the end of this year. However, Bloomberg again reports that Sony has cut-down its PS5 production, contradicting the earlier reports. The firm now intends to manufacture about 11 million units until March 2021.

Sony’s decision to scale down its production comes owing to certain manufacturing issues encountered by the company. A few production issues are being encountered on the PS5’s system-on-a-chip, a central unit that has been customized and designed by AMD for the new console. The issue is that at least 50% of these chips designed did not yield expected results, and they were not worthy of being placed within the PS5 consoles. It explains the reduction in the production of PS5 consoles. 

Bloomberg further reports that although now more and more of these chips yield good results, they are yet to reach a good and stable level such that the PS5 console production can be increased. 

Sony witnessed a dip in its shares by about 3.5% once this news arrived. It is Sony’s largest intraday drop since August. 

At Niko Partners, Daniel Ahmad, the senior analyst, states that this production delay could hamper the PS5 supply in 2021. He further went on to say that Sony has planned to make use of Air Freight so that it can overcome the demands of the holiday season and produce and ship as many units as possible during this time. 

Ahmad also went on to say that issues during production are always common during any launch. However, this could be more serious than anticipated earlier. 

The updated count of PS5 consoles likely to be produced is still far more than what Sony had planned earlier. During April 2020, Sony planned to manufacture five to six million consoles by the end of next March. This estimate is quite lesser compared to the number of consoles that were manufactured during the time of the PS4 launch in 2013. However, thanks to the Covid-19 pandemic, Sony had to revise its manufacturing numbers as more and more people could enjoy playing on these consoles while they are forced indoors. And with the holiday season approaching, it does sound pretty logical to increase game consoles’ production. 

So far, there is no information concerning the pricing and the release date of PS5. However, all the game lovers are pretty well aware that the Xbox Series X is coming at $499, while the Xbox Series S will be available for $299. Masahiro Wakasugi, an intelligence analyst at Bloomberg, predicts that the price of PS5 could be somewhere around $449, which is quite low. He further states that the Digital Edition of PS5 could be lower than $400. 

An online PS5 event is being arranged by Sony on 15 September, in which there is a likelihood of the PS5 cost revelation. The PS5 console coming in two varieties-one would be having the disc drive while the other one will not.

Image source: TheVerge

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