On Monday night, Bloomberg reported that Sony now plans to make about 11 million PS5 units during fiscal 2021 ending in March, down from a prior goal of 15 million. Lower-than-expected production yields for the system-on-chip powering the console were said to be the culprit.
The SoC in question is a custom part supplied by AMD. It features an 8-core, 3.5GHz central processing unit and a 10.3-teraflop graphics-processing unit. It's made using a 7-nanometer Taiwan Semiconductor (TSM) - Get Report manufacturing process.
Sony’s stock is down 1.7% in Tuesday trading following the report. But AMD’s stock is up 1.5%, matching the Nasdaq’s gain for the day. And TSMC’s stock is up 6.5% and making new highs.
In July, Bloomberg reported that Sony had lifted its calendar 2020 PS5 production target to 10 million units from a range of 5 million to 6 million. Japan’s Nikkei reported that Sony’s 2020 PS5 production goal had risen by 50% to 9 million.
In addition to AMD, Micron (MU) - Get Report and Western Digital (WDC) - Get Report are believed to be major suppliers for Sony's (and Microsoft’s) next-gen consoles. Micron is expected to be one of the PS5’s graphics memory suppliers, and Western is expected to be one of its solid-state-drive suppliers.
Sony hasn’t yet unveiled the PS5’s launch date or pricing. With Microsoft pricing the Xbox Series X at $499 and the less powerful Series S at $299, some speculate that Sony will price the standard PS5 at $499 and the Digital Edition of the console, which lacks an optical drive but is otherwise equally powerful, at $399.