Sony Cuts Back PS5 Production Due to Chip Issues: Report

Sony Cuts Back PS5 Production Due to Chip Issues: Report

Sony is reported to have run into supply chain troubles with the upcoming PlayStation 5, according to Bloomberg, something Sony denies. The PlayStation manufacturer is said to have lowered its production estimates to 4 million due to manufacturing issues with its upcoming gaming console’s custom-designed system-on-chip, but the company denies it is true .

A Sony spokesperson told Digital Trends, “Although we do not release details related to manufacturing, the information provided by Bloomberg is incorrect.” “We haven’t changed production numbers for the PlayStation 5 since the start of mass production.”

Sony was expected to produce about 15 million units of the PlayStation 5 this financial year, but that figure has now been brought to 11 million. People familiar with the case told Bloomberg that production yields, a metric that manufacturers use to determine how many produced units are ready to ship against the number of defective ones, are up to 50% for PS5’s reprinted processors. The lower the result, a relatively below average. Although the figure is reportedly improving, it is yet to reach a stable level.

Coincidentally, Sony earlier this year boosted PS5 production by boosting holiday season demand and gaming growth by about 50% as more people, while shelters at home, find new avenues of entertainment.

Nico Partners analyst Daniel Ahmed said, A. Tweet, That even though such production issues are fairly common, especially at the beginning of console launches, it “seems more serious than expected.”

It is also worth noting that this supposed supply chain snag will likely not affect PS5 sales in the early months. Its impact will be more prominent later in 2021, depending on demand and whether Sony manages to complete its production on time.

Ahmed in earlier rumors Claimed Sony will ship PS5 stock to the US by air rather than sea, a more costly decision to speed up shipments and meet retail demand.

Sony is hosting a virtual event on Wednesday, September 16, where PlayStation 5 is expected to announce the price and release date. The company began accepting pre-orders for the new gaming console late last month.

The Sony PlayStation 5 offers 8K gaming and 4K gaming, thanks to a new eight-core AMD Zen 2 CPU, a custom AMD RDNA 2-based GPU, and 825GB SSD storage – all with a power of 10.28 teraflops , Can produce nearly twice as much. Its predecessor, the 4.2 Teraflops of the PS4 Pro.

Updated September 15, 2020: This story was changed to reflect a rebuttal of Sony’s substandard production report.

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