As reported by some sources, Sony is boosting its production for holidays 2020. Sony is anticipating hype and demand as the major movers for the console. With more gamers at home over the holidays, the Playstation 5 will be a hit.
Even then, similar reports note of potential production issues. These details allege that the PS5 production will be short by 4 million units. Sony denies these rumors, saying they haven’t “change their production numbers” since they started.
Within the report, sources say that Sony is having a hard time manufacturing system-on chips for the PS5. These chips are proprietary, which means unstable production will lead to lower yields.
“[But] the company has come up against manufacturing issues, such as production yields as low as 50% for its SOC, which have cut into its ability to produce as many consoles as it wishes,” says the report.
These rumors are problematic, considering that Sony wants the PS5 to succeed. Their Microsoft rivals already fleshed out their pricing and release date. The Xbox Series X will come at $499, whilst the Series S will go at US$299.
Lower production capabilities for Sony means a potential loss against Xbox at launch. It doesn’t help that Xbox has more powerful hardware upon release. Their rivals are also advocating for a more open platform, in contrast to Sony’s exclusivity move.
If Sony can’t meet production demands, Microsoft will take advantage. It doesn’t help that right after the news came out, Sony closed out with a 2.4% drop in company shares.
Sony has already released a statement in regards to their alleged Playstation 5 “chip woes.” Their account vehemently denies any of the information within the rumors.
“While we do not release details related to manufacturing, the information provided by Bloomberg is false,” Sony noted in a statement through a spokesperson. “We have not changed the production number for PlayStation 5 since the start of mass production.”
Fans and pundits alike are expecting Sony to release their pricing models soon. With how aggressive Microsoft is fighting back, the Japanese company can’t have any hiccups.
Any issues with system-on chips can cut down on profit margins while ramping up costs.
Even then, the lowered production estimates can still change until March 2021. The Playstation 5 is in a precarious situation, and fans are closely looking at Sony.
Featured image courtesy of Playstation/Youtube Screenshot
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