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Sony Corp. has cut its estimated production of PlayStation 5 for this fiscal year by 4 million units, to around 11 million, following production problems with its system-on-chip custom designed for the new console, according to people familiar with the system. affair. .
Yields have been gradually improving, but have not yet reached a stable level, they added.
Sony shares erased gains and fell as much as 3.5% on the news, their biggest intraday drop since August. A Sony spokesperson declined to comment.
Last week, its close rival Microsoft Corp. revealed aggressive pricing for its two next-gen consoles, the $ 299 Xbox Series S and the $ 499 Xbox Series S. Xbox Series X, putting additional pressure on Sony. Pre-orders for the new Xbox models begin on September 22.
Sony is expected to reveal its own launch and pricing plans for the PlayStation 5 during an official video presentation scheduled for Wednesday.
The full PS5 console can be priced as low as $ 449, while the slimmer digital version can drop below $ 400, according to Bloomberg Intelligence analyst Masahiro Wakasugi.
Sony started the year with conservative manufacturing plans for the PS5, and has been grappling with the problem of how to price the next console update.
The Covid-19 pandemic led to an upward revision of the company’s projections, as it saw faster adoption of its PlayStation Plus subscription service and record sales of the summer releases The Last of Us: Part II and Ghost of Tsushima.
Nintendo Co. plans a updated version of its Switch console, equipped with better components and potentially 4K output, by 2021.
It is slated to be accompanied by a number of big name new games, defying efforts by Sony and Microsoft to get more players to sign up for their services.
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