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Semiconductor Allocation Is Causing A Bottleneck In PS5 Production

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Sony’s CFO, Hiroki Totoki affirmed that manufacturing plants are slowed down due to a shortage in the semiconductor needed for the PS5. Totoki claims that Sony is having a hard time with the allocation of semiconductors as the key component is also used in smartphones, laptops, vehicles, and digital cameras.

“It is difficult for us to increase the production of the PS5 amid the shortage of semiconductors and other components,” Sony chief financial officer Hiroki Totoki said at a press briefing.

Sony also acknowledged that they haven’t been “ to fully meet the high level of demand from customers”, however, the company reported that from its November launch through the end of December, the PS5 has reached 4.5 million users worldwide. It’s also reported that Sony is selling the consoles at a loss, but the company is recouping its investment thanks to software sales, PlayStation Plus, and PlayStation Now subscriptions.

“We continue to do everything in our power to ship as many units as possible to customers who are waiting for a PS5”

Sony analyst’s forecasts sell over 7.6 million PS5 consoles by the end of March, this and the 4.5 million units sold reveals that the PS5 is having a very successful launch, on par with the PS4 2013’s launch.

Mike Spencer, Microsoft’s Head of Investor Relations, Mike Spencer anticipates a shortage of Xbox Series X|S consoles until June 2021. Spencer’s claims are following Lisa Su’s recent statement in which she expects shortages to affect the components needed for the CPU and GPU of the Xbox Series X|S and PS5.

‘It‘s fair to say that the overall demand exceeded our planning, and as a result, we did have some supply constraints as we ended the year,’ AMD’s CEO says. Shortages for the company’s processors are expected to continue through the first half of 2021 as AMD’s manufacturing partners continue to build capacity.”

Source: nypost

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