Sony has reportedly reduced its PlayStation 5 production outlook due to component and logistics issues, according to Bloomberg. The publication cited people familiar with the company’s operations, saying that it had reduced the previous target of 16 million units assembled by March 2022, to 15 million units.
The sources also said that this makes Sony’s aim of 14.8 million PS5 sales by March next year more difficult. It was revealed back in July that the firm had sold more than 10 million units, making it the fastest-selling PlayStation console at the time, but has since been falling behind sales of the PlayStation 4 due to supply limitations.
This comes at a time when there is a global shortage of chips which has disrupted the supply chains for various industries, affecting the production of electronic devices and even automobiles ranging from GPUs, iPhones, iPads, BMWs, and many others. Earlier this month, rival Nintendo similarly cut Switch sales forecasts by 1.5 million units due to supply shortage.
Sony’s struggle with its PlayStation 5 production line seems to stem from uneven vaccine rollouts as developing countries, where many of Sony’s suppliers are based in, have much lower vaccination rates. This meant that the suppliers were more prone to being shut down from COVID-19 breakouts, making chips and parts production unpredictable. Sony is reportedly teaming up with Taiwanese semiconductor firm TSMC to open a new semiconductor factory in Japan, but this won’t be up and running until 2024.
(Source: Bloomberg)
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