[ad_1]
In this photo illustration, the PlayStation 5 logo displayed on a smartphone.
Rafael Henrique | Images of SOPA | LightRocket | fake images
SINGAPORE – Japan’s Sony shares tumbled after a report that the company is reducing its estimated production for its PlayStation 5 game console.
The stock was trading about 1.8% lower Tuesday morning, recovering from losses earlier in the session when they fell more than 3%.
The moves came after Bloomberg reported, citing people familiar with the matter, that Sony cut its estimated PlayStation 5 production for the fiscal year by 4 million units. The report said the reduced outlook was related to production issues with the system on chip (SOC) custom designed for the console.
Bloomberg said the Japanese electronics powerhouse has been facing manufacturing problems, with production yields as low as 50% for its SOC.
Sony did not immediately respond to CNBC’s request for comment.
The latest development comes as Sony gears up for its next-gen console battle against Microsoft. The rival recently released pricing details for its new Xbox consoles that will launch in November.
While Sony has yet to announce pricing details for the PlayStation 5, the PlayStation blog is teasing an exhibition scheduled for Wednesday.
