Buying a PS5? Your Pre-Order Just Became a Whole Lot Harder

Low SoC yields downgrade PS5 production estimate by 4 million, raising concerns of shortages should Sony win big in pricing tussle with Xbox.
PlayStation 5, PS5
Sony anticipates the PlayStation 5 to be even more popular than the PS4 - and it may still fall short with supply. | Source: Shutterstock.com
  • A new report reveals that Sony has downgraded its PS5 production forecast by 4 million for the current fiscal year.
  • Low system-on-a-chip yields – as low as 50% – have reportedly hampered the rate of production.
  • Sony is set to host a dedicated PS5 showcase tomorrow, where it is expected to reveal pricing information and a release date.

The chances of securing a PS5 pre-order have taken a significant hit as Sony is reportedly scaling back production by four million units for the current fiscal year due to manufacturing woes affecting the yield of the console’s custom system-on-a-chip.

According to a new Bloomberg report, the Japanese gaming giant now expects to ship 11 million units by March 2021, a significant cut from the 15 million production estimates reported during the summer. By December, Sony planned to produce up to 10 million units to cater to heightened demand spurred by the pandemic. This may no longer be the case, implying a curtailed launch supply.

The report reveals that production yields of the AMD-designed system-on-the-chip hit a low point of 50%, with half of the units not fit for purpose. Yields are reportedly steadily increasing, but have yet to reach sustainable and reliable levels.

PS5
Low SoC yields hamper Sony’s ability to produce as many PS5 units as intended. | Source: PlayStation/Sony Interactive Entertainment

Yield hiccups are part and parcel of new products as silicon manufacturers adapt machinery and perfect processes, but as analyst Daniel Ahmad points out, Sony’s are ‘more severe than expected.’

These lower yields mean the production of fully-assembled console has slowed; the SoC is the core component around which the rest of the machine is built. The issues have severely hampered Sony’s ability to pump out as many PS5s as intended.

PS5 Demand To Dictate Launch Shortages

While the revised production cut is substantial, it is roughly double the 5 to 6 million units Sony originally aimed to produce, as confirmed in April. Furthermore, a forecast of 11 million units by March 2021 will be slightly higher than PS4 production in the first six months after launch, roughly around 10 million.

It’s difficult to estimate whether the demand for the PS5 will surge past the number of available units at launch. The company has yet to reveal the price details for the console’s two versions, though it is expected to do so during a dedicated PS5 broadcast tomorrow.

Demand will very much depend on the price point Sony opts for, notably how it stacks up to the aggressively priced $299 Xbox Series S and $499 Xbox Series X. Should Sony undercut competitor Microsoft, we’re likely to see a run on pre-orders, which could drastically impact the ability for would-owners to pick up a PS5 at launch.

Samburaj Das edited this article for CCN.com. If you see a breach of our Code of Ethics or find a factual, spelling, or grammar error, please contact us.

Comments

* All comments must be approved by staff before appearing on CCN.com. We do not allow bad language, hate speech, nor verbal attacks on staff or other commentators. Some comments may be edited for clarification or if they are in breach of our comment policy. If you wish to delete your comment or data, please contact us.

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

Most Commented

More from this author: