In this photo illustration the PlayStation 5 logo seen displayed on a smartphone.
Rafael Henrique | SOPA Images | LightRocket | Getty Images
SINGAPORE – Shares of Japan’s Sony fell following a report that the company is reducing estimated production for its PlayStation 5 gaming console.
The stock was trading around 1
The moves came after Bloomberg reported, citing people familiar with the matter, that Sony has cut its estimated production for the PlayStation 5 for the fiscal year by 4 million units. The report says the reduced outlook was related to manufacturing issues with the system-on-chip (SOC) custom designed for the console.
Bloomberg said Japan’s electronics powerhouse faced production problems, with production yields of up to 50% for its SOC.
Sony did not immediately respond to CNBC’s request for comment.
The latest development comes as Sony prepares for its next-generation console battle against Microsoft. The rival recently released pricing details for its new Xbox consoles which are expected to launch in November.
While Sony hasn’t announced pricing details for the PlayStation 5 yet, the PlayStation blog is anticipating a showcase scheduled for Wednesday.