PlayStation 5 Production Reportedly Slashed By Sony

As the world gears up for the PlayStation 5 launch, a piece of rather disappointing news has come to light. According to Bloomberg, Sony has reduced its production for the PlayStation 5 by 4 million units. This is due to an issue with the production of the custom-designed chip for the same.

Bloomberg’s sources also report “ …But the company has come up against manufacturing issues, such as production yields as low as 50% for its SOC, which have cut into its ability to produce as many consoles as it wishes, said the people, who asked to remain anonymous because the deliberations aren’t public. Yields have been gradually improving but have yet to reach a stable level, they added. “

Sony’s slashing of the PlayStation 5 production doesn’t look good for the announcement tomorrow

It seems the COVID-19 pandemic is taking its toll on the manufacturers and will definitely be a major roadblock for the global supply of the console. This bit of news is definitely disappointing considering Bloomberg earlier reported that Sony was boosting its production. This could be a major setback for the console giant and could hinder the sales massively.

It is not the nature of the news, but the timing that is alarming. The PlayStation Showcase is scheduled for September 16 i.e. tomorrow. Consequently, this bit of news will definitely not sit well with the fans considering the big price reveal may happen tomorrow.

Industry insider provides further insight

In addition to this, popular industry insider Daniel Ahmad also had his say on this and added some predictions of his own. He says “While PS5 production is expected to be higher than PS4, when aligned, this issue will hit PS5 supply during 2021. Production yield issues will always exist, especially at the beginning of a console launch, though this does seem more severe than expected.”

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Additionally, he also mentions “Here’s the best way to think of the above. PS5 first six month production initially much higher than PS4. Now due to yield issues PS5 production is slightly higher than PS4. So there will still be more supply than PS4 launch, but the real question is how high is demand?”

He makes a very valid argument here. Considering there is still an announcement to be made regarding the price, it is rather difficult to assess the demand. Sony will have more clarity on this once they open pre-orders following tomorrow’s announcement. Naturally, there will be many other factors influencing the demand other than the price.

The PlayStation Showcase is rumored to have a few surprises as well. Hopefully, this will boost the demand for the console and Sony will be able to match its predicted numbers.