Sony reduces PS5 production by 4 million units due to yield issues

In July, it was reported that Sony was planning to double the production of PlayStation 5 to meet an expected increase in demand due to the ongoing pandemic that has seen the sales of video games surge. The company had initially planned to produce five to six million units of its upcoming gaming console before bumping it to 10 million units.

Sony's plan was to bump the PS5 production to 15 million units by March 2021 to meet the high interest in the console. However, since the company has been facing production issues with the PS5's SoC, it has reportedly reduced its production target by 4 million to 11 million units. More specifically, Sony has been facing yield issues with the PlayStation 5's SoC - which is at about 50 percent - that has forced the company to cut down on production. While the yields are gradually improving, they still have not reached a stable level yet.

Sony is scheduled to hold a PlayStation 5 Showcase event on September 16th where it is expected to showcase more new games that are coming to the gaming console. The company is also expected to detail the specifications of the PlayStation 5 along with its price and release date. Microsoft has already revealed all key details of the Xbox Series S and Series X, with prices starting at $299.

Source: Bloomberg

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