Sony Refutes Bloomberg Report and Exposes Crucial PS5 Stakes

Sony says a Bloomberg News report of PS5 production woes are false in an effort to reverse the damage caused to its stock price.
The Sony Playstation logo is seen past people on the exhibition floor during the Tokyo Game Show in Makuhari, Chiba Prefecture on September 12, 2019. (Photo by CHARLY TRIBALLEAU / AFP)
  • Sony has refuted a report claiming a major scaling back of the company’s PS5 production forecast.
  • The Bloomberg report pointed to production woes limiting the gaming giant’s ability to hit a previously established target of 15 million consoles by March 2021.
  • The news spurred a sharp downturn in Sony’s stock price – its lowest level since July.

Sony has denied a report that it has significantly downgraded its PS5 production forecast by 4 million units, noting that its production goal has not shifted since mass production began this summer.

The report, published by Bloomberg yesterday, claims that low-yield issues with the console’s system-on-a-chip had forced the gaming giant to reassess its projections for the fiscal year ending in March 2021. According to the report, Sony now aims to produce 11 million units instead of 15 million within the same time frame.

Sony says its PS5 production forecast hasn’t changed. | Source: PlayStation/Sony Interactive Entertainment

In a statement sent to GamesIndustry.biz, a Sony representative was quick to refute the report, explaining:

“While we do not release details related to manufacturing, the information provided by Bloomberg is false. We have not changed the production number for PlayStation 5 since the start of mass production.”

Sony remains typically silent when it comes to media reports and rumors, making this public statement an uncommon occurrence, suggesting the company is eager to steer the PS5 launch narrative away from panic among would-be owners fearing launch day shortages and pre-order woes.

While there’s nothing to suggest Sony’s statement is skirting around the topic with the comment – indeed, as a publicly-traded company, such a deviation from the truth would land it in untold amounts of hot water – the move bears the stench of damage limitation.

PS5 Damage Limitation

After yesterday’s news of a 4 million PS5 production downgrade, Sony’s stock took a sharp turn towards, closing on Tuesday down 2.4%, the lowest level since July, according to Bloomberg. Refuting the report will have undoubtedly quashed concerns and presumably reassured investors that Sony is armed for a successful PS5 launch later this year.

PS5
Sony shares take a fall in light of forecast downgrade news. | Source: Bloomberg News

The company is hosting a dedicated PS5 showcase later today, where it is widely expected to reveal the release date for the next-gen console alongside pricing information.

Sony is anticipating a massive demand and has reportedly drafted in a fleet of 60 aircraft to ensure the delivery of enough units to US distributors in time for 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: