This photo shows the PlayStation 5 logo displayed on a smartphone.
Rafael Henrique | SOPA Pictures | LightRocket | Getty Images
SINGAPORE – Shares in Japan’s Sony have tumbled after reports that the company is cutting its estimated production of its PlayStation 5 game console.
The stock traded about 1.8% lower on Tuesday morning, recovering from early-session losses when it fell more than 3%.
The moves came after Bloomberg reportedciting people familiar with the matter, Sony has slashed its estimated PlayStation 5 production by 4 million units in the fiscal year. The report says the deterioration in forecasts is due to manufacturing issues related to the development of a custom designed system on a chip (SOC) for the console.
Bloomberg reported that the Japanese electronics company is facing production challenges as its SOC has a yield of only 50%.
Sony did not immediately respond to CNBC’s request for comment.
The latest development comes as Sony prepares to battle Microsoft for next-gen consoles. Rival recently released pricing information for its new Xbox consoles to be launched in November.
Although Sony has yet to announce pricing for the PlayStation 5, The PlayStation Blog is a demo scheduled for Wednesday.
