Today, the Japanese technology company Sony revealed that it would reduce PS5 production due to difficulties encountered in component shortage and has internally lowered its production plan for the fiscal year.
Sony had earlier intended to make 16 million PS5 units in the fiscal year that runs from April 2021 to March 2022.
However, reports show that manufacturing has been cut by one million units this time. Sony has previously stated that sales of the PS5 are expected to reach 14.8 million units this fiscal year.
Sony is alleged to have experienced logistical and component supply issues. Chips are currently in low supply all around the world.
According to Bloomberg, component deliveries have been delayed, and vaccine shortages in several regions have impacted production and operations.
Sony expects 22.6 million PS5 sales in the fiscal year that begins in April of next year, but its manufacturing partners feel this will be tough to achieve.
In addition to Sony, Nintendo announced earlier this month that it will cut its sales target for Switch this fiscal year by 1.5 million devices due to a lack of CPUs.
On the same note, the new handheld Steam Deck handheld/handheld computer from the V agency was also delayed for 2 months due to the same reasons reported.
Even though the production of 1 million units is not cut much, the PS5 supply will become more constrained in the coming year and the company will be able to meet its sales objective while also having extra inventory in the second year.