Sony cuts PlayStation 5 production outlook due to component snag -Businesshala News

- Advertisement -


Nov 10 (Businesshala) – Sony Group Corp (6758.T) has downgraded its PlayStation 5 production outlook for this fiscal year due to component and logistics constraints, Businesshala news Reported on Wednesday.

- Advertisement -

The report, citing people familiar with its operations, said the company has cut the number of PS5 units for the fiscal year to around 15 million, down from its previous target of 16 million units.

- Advertisement -

The development comes amid a global shortage of semiconductors that is affecting companies including Sony. Sony did not immediately respond to a Businesshala request for comment.

In October, the conglomerate spanning sectors such as entertainment, sensors and financial services said it was on track to sell 14.8 million PS5 consoles this fiscal year, a target that takes into account the global shortage.

- Advertisement -

Gaming firms’ earnings were hit last year by stay-at-home demand during the depths of the COVID-19 pandemic. Sony’s finance chief Hiroki Totoki said that since then, the decline in PlayStation user numbers has stabilized, as the company approaches the year-end shopping season.

Separately, Sony is partnering with Taiwan Semiconductor Manufacturing Company (2330.TW) (TSMC) to build a $7 billion chip plant in Japan.

Construction of the factory, which local media said last month will supply semiconductors to Sony’s image sensor business, will begin in 2022, with production beginning in late 2024, the companies said in a press release.

Reporting by Aakriti Bhalla in Bengaluru; Editing by Michael Perry

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox