Game console makers are optimistic even amid the pandemic as it drives demand for digital entertainment. Against this background, unexpectedly, there are reports from sources about Sony’s intentions to cut the production program of the PlayStation 5 by 4 million copies due to problems with the supply of a key component.
Image source: Sony Corp.
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The corresponding surprise was thrown to the Japanese corporation by the agency Bloomberg, which through its own channels found out that the “custom” AMD processor with graphics of the RDNA 2 generation underlying the PlayStation 5 suffers from a high defect rate – according to the source, it can reach 50%. This sounds a little strange, considering AMD’s confidence in the technological capabilities of its partner TSMC, which also produces components for the Sony game console.
One way or another, the source reports that Sony was forced to cut plans for the release of the PlayStation for the current fiscal year, which ends in March, from 15 to 11 million copies. It has nothing to do with overestimating demand, Sony is solely driven by the contractor’s ability to supply the processors needed to build the PlayStation 5. Yield is improving over time, but so far Sony cannot count on meeting its original sales target.
Shares of Sony on the background of such news fell by 3.5%, at the time of publication of the material, comments from company representatives were not available. Sony is due to unveil the PlayStation 5 game console this week in two flavors. The main competitor in the face of Microsoft has previously announced the prices for its new generation consoles: the younger Xbox Series S is priced at $ 299, the older Xbox Series X will require $ 499. Whether Sony will be able to offer competitive prices will be announced late Wednesday.
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