Sony Is Reportedly Going To Slash Production Of PlayStation 5 Due To Production Issues
Sony Corporation, a Japanese multinational company, is going to cut its production for PlayStation 5 by 4 million units, Bloomberg reported, citing people familiar to the matter. Earlier, the same tabloid reported that the firm is going to boost up its PS5 production by 50%.
According to the reports, Sony has encountered production issues owing to its customized chip which is a core processing unit for the system. The chip designed by AMD is said to have a manufacturing problem that has reduced the expected production level. However, Bloomberg also reported that the yield is improving but has not “yet to reach a stable level.”
Following the reports, Sony’s stock traded 2.38% lower on Tuesday morning, CBNC reported. Sony was earlier planning to produce about six million consoles in 2020, while Nikkei reported that the figure is expected to reach nine million. The coronavirus crisis has propelled the growth of the gaming industry which might have ultimately led the company to boost up its production.
Last week, Sony announced that it’s going to broadcast a 40-minute “digital showcase” on September 16th, 2020. It is expected that the company is going to unveil the price and date of release. Meanwhile, it has already launched a pre-order for PS5 last month. The company launched its PS4 in 2013 and is expected that PS5 production is going to less than its predecessor.
Sony’s gaming industry rival Microsoft revealed the price of its next-generation consoles. Bill Gates owned the company unveiled the price of Xbox Series S and Xbox Series X at USD 299 and USD 499 respectively. Both of its models has 8-core CPUs while X series has 4K and S series settles for 1440p. This has added the pressure on Sony and is speculated that the price difference between the two brands would be competitive. The Bloomberg Intelligence analyst Masahiro Wakasugi has predicted that the price of full PS5 regular console would be USD 499 while the price of its digital version can slip up to USD 400.
Meanwhile, Nintendo, a prominent Japanese gaming company, is reportedly planning to debut the upgraded model of its Switch console in the year 2021. According to the people familiar to the matter, the new console model is expected to have 4K high definition graphics and more computing power. Bloomberg News reported that the production is not going to start before this year due to the high demand for current models.
In this coronavirus outbreak, Sony launched the PlayStation Plus subscription service for USD 59.99 plus the applicable tax annually. The subscribers will get exclusive discounts, free monthly game access, and the option to connect with other games online for multi-player games. Besides this, the upcoming launch of PS5, the company has also announced the launch in the different electronic segments.
Additionally, Sony announced the launch of A7C, its latest Alpha range of the full-frame mirrorless camera. As of now, it’s the company’s smallest Alpha range model. The Japanese company has specifically developed a kit lens for this model which the company describes as “the world’s smallest and lightest full-frame camera system.”