Sony cuts on PlayStation 5 production

By: Miguel A. Rodriguez

15:27, 15 September 2020

Sony slashed estimates for PlayStation 5 production

PlayStation’s Sony had a rough beginning of the week, as it announced a cut of its production estimates for the soon-to-be-launched PlayStation 5 console. 

Due to a chip problem, the cut will be roughly of 20%, and the production will stand at around 11 million units. According to people familiar with the matter, the Japanese company struggles for quite some time with manufacturing issues of its custom system-on-chip (SOC).

Sony is currently preparing for a "battle of game consoles" with its competitor, Microsoft, who announced its future #Xbox Series X game console. The Microsoft console will be launched on November 10, and it will cost $499. 

Despite the setback, analysts believe that "the shortfall won't be critical if Sony can really ship 11 million for this fiscal year." From their perspective, the focus will be actually on the price and the pipeline of games. 

More about the matter will be discussed at the #PlayStation 5 release videoconference tomorrow. 

Following the news, Sony ended the Japanese trading session 2.40% lower. Microsoft lost 1.20%. 


Share this article

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.