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Custom chip woes sees Sony cut Playstation 5 production estimates by 4 million

Bloomberg
Bloomberg9/16/2020 10:6 AM GMT+08  • 3 min read
Custom chip woes sees Sony cut Playstation 5 production estimates by 4 million
Sony's shares erased gains and closed down 2.4% Tuesday, their lowest level since July.
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Sony Corp. has cut its estimated PlayStation 5 production for this fiscal year by 4 million units, down to around 11 million, following production issues with its custom-designed system-on-chip for the new console, according to people familiar with the matter.

The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the coronavirus. But the company has come up against manufacturing issues, such as production yields as low as 50% for its SOC, which have cut into its ability to produce as many consoles as it wishes, said the people, who asked to remain anonymous because the deliberations aren’t public. Yields have been gradually improving but have yet to reach a stable level, they added.

The company’s shares erased gains and closed down 2.4% Tuesday, their lowest level since July.

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