The impacts of production issues are expected to be felt in 2021.
We’re now just a day away from Sony’s recently announced PS5 showcase broadcast. The event is expected to reveal some more information on launch titles, as well as both the price and release date of the console, especially now that Microsoft has revealed those for both the Xbox Series S and Series X.
While we’re now hitting an important, and exciting time, all isn’t totally rosy in camp PlayStation. Bloomberg has reported that Sony is having some major production issues, with “production yields as low as 50%”, causing them to cut their forecasts “for this fiscal year by four million units.” Bloomberg does state that “Yields have been gradually improving but have yet to reach a stable level”
Back in July, it was reported that Sony had significantly increased production of the PS5 in anticipation of a busier than expected launch. Unfortunately, the issues with producing the “custom-designed system-on-chip” may now hamper that by quite a bit. It’s unclear how much of an impact, if any, this will have on the reported 120 million units Sony plan to ship of the PS5 in its first five years.
Niko Partners’ industry analyst, Daniel Ahmad added some more important information to the mix, saying that although “PS5 production is expected to be higher than PS4, when aligned, this issue will hit PS5 supply during 2021.” Before adding that “Production yield issues will always exist, especially at the beginning of a console launch, though this does seem more severe than expected.”
For those worried about whether they will be getting a PS5 at launch, Ahmad reminds us that Sony would be using “Air Freight to meet demand this holiday and ship as many units as possible in the launch period.” Which, while more expensive, will allow them to ship units significantly faster.
Keep your eyes peeled here for all of the information from Sony’s showcase as it drops tomorrow.
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