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Sony cuts PS5 production target by 4 million units due to production yield issues

Athan Immortal
By Athan Immortal
in Tech News
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Posted

UPDATE: Per GamesIndustry.biz article, Sony is denying the rumour.

 

Summary

Sony has apparently cut production target of the PS5 by 4 million units due to yield problems with the SOC (System On Chip, i.e AMD's CPU and GPU).

 

Quotes

Please note, original article is from the Japanese Bloomberg, hence the reference to Japanese release dates and pricing.

Quote

 It is clear that Sony has revised down the production volume of the next-generation game machine "PlayStation (PS) 5" to be released within the year by 4 million units in this term (the term ending March 2021) to about 11 million units. Became. The production yield of the specially designed integrated circuit "System on Chip (SOC)", which corresponds to the heart of PS5, is not stable.

Quote

Because the information was not disclosed, multiple parties revealed it on condition of anonymity. In July, the company informed its parts suppliers that it would double its production volume, considering that the consumption of nesting due to the spread of the new coronavirus infection would support demand even after the year-end sales season.

According to the person concerned, the production volume has been forced to be reviewed because the yield of SOC is sluggish at about 50%. He said that the yield is improving, but the quality has not reached a stable level. A Sony spokeswoman declined to comment.

Quote

Last week, Microsoft sold the "Xbox Series X" for $ 499 (Japan's domestic price is 49,980 yen) and the "Series S" without a disk drive for $ 299 (32,980 yen). Announced to be released on the 10th of March. There is a view that the announcement of affordable prices poses a threat to Sony.

My thoughts

The yield issue is interesting. We know the PS5 includes fewer CUs in the graphics unit compared to Microsoft's Series X, but clocks much higher to make up for this. This yield problem could be down to graphics cores that are unable to reach that higher almost 2ghz level rather than all out failures.The demand for PS5s was expected to be more than PS4s, but now they will have fewer PS5 units, this is could cause quite a supply problem on top of the usual price gouging.

 

Sources

 

Original Bloomberg Japan article - https://www.bloomberg.co.jp/news/articles/2020-09-15/QGFJPPDWLU6M01

Bloomberg paywalled article - https://www.bloomberg.com/news/articles/2020-09-15/sony-is-said-to-cut-ps5-forecast-by-4-million-due-to-chip-woes

Reddit translation - https://old.reddit.com/r/hardware/comments/isz6aw/sony_cuts_ps5_production_by_4m_units_due_to/g5badew/

 

Additional sites now picking up the story:

https://www.gematsu.com/2020/09/bloomberg-sony-cuts-ps5-initial-production-orders-by-four-million-units

 

GamesIndustry article says Sony are denying the rumour - https://www.gamesindustry.biz/articles/2020-09-15-sony-reportedly-cuts-ps5-production-by-4m-units

 

Athan is pronounced like Nathan without the N. <3

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Part of me thinks they are blaming yields to make investors...content with the reduction. But I wouldn’t be surprised to find out it was because they expect lower demand given the pandemic

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3 minutes ago, rockking1379 said:

Part of me thinks they are blaming yields to make investors...content with the reduction. But I wouldn’t be surprised to find out it was because they expect lower demand given the pandemic

They will sell 15 million units easily

▓ƆԀ▓ S▓₱▓Ɇ▓c▓s▓: i7 6ʇɥפᴉƎ00K (4.4ghz), Asus DeLuxe X99A II, GT҉X҉1҉0҉8҉0 Zotac Amp ExTrꍟꎭe),Si6F4Gb D???????r PlatinUm, EVGA G2 Sǝʌǝᘉ5ᙣᙍᖇᓎᙎᗅᖶt, Phanteks Enthoo Primo, 3TB WD Black, 500gb 850 Evo, H100iGeeTeeX, Windows 10, K70 R̸̢̡̭͍͕̱̭̟̩̀̀̃́̃͒̈́̈́͑̑́̆͘͜ͅG̶̦̬͊́B̸͈̝̖͗̈́, G502, HyperX Cloud 2s, Asus MX34. פN∩SW∀S 960 EVO

Just keeping this here as a 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Just now, BuckGup said:

They will sell 15 million units easily

I tend to agree, I genuinely think cutting production targets could be down to stretching some of the silicon too far. Demand wont be the issue.

Athan is pronounced like Nathan without the N. <3

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33 minutes ago, Athan Immortal said:

I tend to agree, I genuinely think cutting production targets could be down to stretching some of the silicon too far. Demand wont be the issue.

Never is for a console launch 

Dirty Windows Peasants :P ?

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So we're already seeing evidence of TSMC being stretched thin. Doesn't bode well. 

🌲🌲🌲

 

 

 

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TSMC has no problems with that node by itself, it looks like this is either a problem with not reaching higher clock speeds and/or the SOC reaches the required speeds, but at too high voltage/power consumption. Another aspect of the PS5 is that part of the SOC is designed by Sony (an IO chip for decoding SSD data), maybe that part is problematic.

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So if I’m reading this right they wanted to double production from 5.5 to 11 million but had to settle for 7 million which may possibly go up.

Not a pro, not even very good.  I’m just old and have time currently.  Assuming I know a lot about computers can be a mistake.

 

Life is like a bowl of chocolates: there are all these little crinkly paper cups everywhere.

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1st gen PS5 launches could be plagued with HW errors long after initial lunch. I expect the RMA numbers to be high.

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20 minutes ago, StDragon said:

1st gen PS5 launches could be plagued with HW errors long after initial lunch. I expect the RMA numbers to be high.

Heard rumours about high temps and a possible redesign months ago, wouldn't be suprised.

Dirty Windows Peasants :P ?

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Scalpers unite

One day I will be able to play Monster Hunter Frontier in French/Italian/English on my PC, it's just a matter of time... 4 5 6 7 8 9 years later: It's finally coming!!!

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2 hours ago, Bombastinator said:

So if I’m reading this right they wanted to double production from 5.5 to 11 million but had to settle for 7 million which may possibly go up.

The OP quotes explicitly state a reduction from 15M to 11M.

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Just now, porina said:

The OP quotes explicitly state a reduction from 15M to 11M.

So the doubling was to 15m which would mean the original order was for 7.5m and it turns out they can only make 11m?

Not a pro, not even very good.  I’m just old and have time currently.  Assuming I know a lot about computers can be a mistake.

 

Life is like a bowl of chocolates: there are all these little crinkly paper cups everywhere.

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16 minutes ago, porina said:

The OP quotes explicitly state a reduction from 15M to 11M.

 

14 minutes ago, Bombastinator said:

So the doubling was to 15m which would mean the original order was for 7.5m and it turns out they can only make 11m?

Just want to settle this one, because I understand where the confusion is coming from.

 

Bombastinator is right.

 

Quote

In July, the company informed its parts suppliers that it would double its production volume, considering that the consumption of nesting due to the spread of the new coronavirus infection would support demand even after the year-end sales season.

Then

Quote

According to the person concerned, the production volume has been forced to be reviewed because the yield of SOC is sluggish at about 50%. He said that the yield is improving, but the quality has not reached a stable level.

I know because of the order the quotes read it may not make sense at first, but it seems Sony was betting in July that because of all the people staying at home there would be even more demand, and increased their order, but then found by now (September) the yields wont support that, so they've revised it down.

Athan is pronounced like Nathan without the N. <3

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3 hours ago, StDragon said:

1st gen PS5 launches could be plagued with HW errors long after initial lunch. I expect the RMA numbers to be high.

 

2 hours ago, Lord Vile said:

Heard rumours about high temps and a possible redesign months ago, wouldn't be suprised.

That's also why they have this "special cooling solution" I already forgot what it was... Oh like liquid metal in a "cage" around the chip, something like that?

 

Definitely getting PS3 flashbacks here lol 

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45 minutes ago, fade said:

 

Thanks, I've marked you as an answer so it appears at the top of the post.

Athan is pronounced like Nathan without the N. <3

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