This photo illustration shows the PlayStation 5 logo on a smartphone.
Rafael Henrik | Sopa Images | Lightrocket | Getty Images
SINGAPORE – Japan’s Sony shares fell after reports that the company was cutting estimated production for its PlayStation 5 gaming console.
The stock traded about 1.8% lower on Tuesday morning, while it recovered from a previous loss of more than 3% during the session.
Sony took the step after Bloomberg reported, citing people familiar with the matter, that Sony had reduced production of its estimated PlayStation 5 for the fiscal year by 4 million units. The report says that the reduced approach is related to production issues with the custom-designed system-no-chip (SOC) for consoles.
Bloomberg said the Japanese electronics powerhouse is facing manufacturing issues, while its output is as low as 50% for its SOC.
Sony did not immediately respond to a request for comment from CNBC.
The latest developments come as Sony prepares for its upcoming pay-generation console battle against microsoft. The competitor has recently released pricing details for its new Xbox console which is slated to launch in November.
While Sony has not announced pricing details for the PlayStation 5, the PlayStation blog is annoying the showcase scheduled for Wednesday.
.
