Sony to cut production for PS5 even more due to component and logistics constraints: Report
Sony has reduced its PS5 production for this fiscal year due to component and logistics constraints according to a new report by Bloomberg.
While demand for tech products shot up during the Covid-19 pandemic, the supply of products has been strained. While the supplies of the PlayStation 5 were strained, it seems as if the availability of Sony's latest game console will again be reduced according to a report by Bloomberg.
The report states that Sony has reduced its PS5 production for this fiscal year due to component and logistics constraints. Bloomberg citing sources familiar with the operations, claims that the company previously had a production forecast of 16 million units for the year ending in March 2022. Now, the company has apparently reduced the forecast to about 15 million, which means it will probably just match its goal of selling 14.8 million PS5 units by March.
Sony, Chief Financial Officer Hiroki Totokiduring a conference call late last month with investors stated that logistic issues and part shortages have grown severely. He also stated that the PS5 sales in the quarter ended September were slightly weaker than expectations.
To recall, the PlayStation 5 has managed to become Sony's fastest console to reach 10 million units sold back in July, but has fallen behind since.
Sony's current production problems stem from the uneven vaccine rollouts in countries where it has set up its production bases. This has led to an unpredictable supply of chips and other components. The company's manufacturing partners has stated that they expect the PS5 to continue to have strained availability through 2022. They have also stated that meeting the sales target of 22.6 million in the next fiscal year will also be a big challenge due to the production issues.
According to the report, the components currently in short supply include essential parts like power management chips.
Sony is not the only company struggling, as rival Nintendo also recently cut its full-year sales forecast for the Switch console by 1.5 million units. Valve has also pushed back the debut of its Steam Deck portable console.
Published:Fri, November 12, 2021 4:47pm