Sony slashes PlayStation 5 production outlook due to component issue – report

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The company is reducing the number of PS5 units assembled for the year to around 15 million, from its previous target of 16 million units.

Sony Group Corp has cut its PlayStation 5 production outlook for this fiscal year due to component and logistics constraints, Bloomberg News reported on Wednesday.

The company has reduced the number of PS5 units assembled for the fiscal year to around 15 million, from its previous target of 16 million units, the report added, citing people familiar with its operations.

The development comes amid a global semiconductor shortage that is affecting companies like Sony. Sony did not immediately respond to a request for comment from Reuters.

In October, the conglomerate – spanning areas such as entertainment, sensors and financial services – said it was on track to sell 14.8 million PS5 consoles this fiscal year, a target that takes into account global shortages.

Gaming company profits were hit last year by demand for home stays during the height of the COVID-19 pandemic. Since then, the sliding number of PlayStation users has stabilized, said Hiroki Totoki, Sony’s chief financial officer, as the year-end shopping season approaches.

Separately, Sony is teaming up with Taiwan Semiconductor Manufacturing Co (TSMC) to build a $ 7 billion chip factory in Japan.

Construction on the plant, which local media reported to supply semiconductors to Sony’s image sensor business last month, will begin in 2022, with production scheduled to begin in late 2024, the companies said in A press release. – Rappler.com


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