Ahead of the holidays, Sony says that it might not produce as many PS5 units as expected. Reports say that Sony is cutting PS5 production by 4 million units, which means only 11 million total units produced by March 2021.  

Sony PS5 Production Cuts

Bloomberg reported on Sony’s PS5 production cuts. According to the report, chip problems have forced Sony to cut down. Earlier, The Verge reported that Sony had planned to add around 10 million more PS5 units by December.  

Sony PS5 Chip Problems

In contrast to the PS4 launch in 2013, Sony wouldn’t sell as many PS5 units at launch this year. An earlier The Verge report said that Sony plans to ship around five to six million PS5 units through March 2021.

The problems arise from the custom system-on-a-chip that AMD designed for the PS5. During production, Sony got yields as low as 50%. This yield means that only half of the total chips were worth shipping. Despite improvements, the numbers have “yet to reach a stable level.” 

What’s Next for the PS5?

Sony would have produced fewer PS5 units this year than during the PS4 launch in 2013. However, the company planned to ramp up production because of the COVID-19 pandemic. With more people staying home, Sony saw a video game boom.

The industry expects Sony to reveal the price and release date for the PS5 on their online event Wednesday. For now, people only know that Sony will release two PS5 models. One of them will have a disc drive, while the other one will not.

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