Sony denies cutting PlayStation 5 production targets

  • Sony denies cutting PlayStation 5 production targets

Sony denies cutting PlayStation 5 production targets

Just as Sony is preparing to officially announce the pricing of the upcoming PlayStation 5 console, Bloomberg reported that there might be potential trouble behind the scenes.

The causes for the cutback are issues on the manufacturing side of things.

Due to the coronavirus pandemic, the gaming industry has seen a rise in demand, especially for consoles, as more people spend more time at home.

Sony's shares fell by 2.4 percent by close on Tuesday following this news. The company declined to comment on Bloomberg's report. Yields have been gradually improving but have yet to reach a stable level, they added.

Analysts are concerned that SOC production issues can result in an increase in the component's cost, which will impact Sony's profits. Sony's lowered forecast is only an estimate and could be revised again before the end of the fiscal year in March 2021. Pre-orders for the new Xbox models begin on September 22. According to analyst Masahiro Wakasugi, the PS5 might be priced "as low as $449" (about Rs. 33,000) while the PS5 Digital Edition price might drop below $400 (about Rs. 29,500).