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Sony cuts PS5 production by 4 Million units due to yield issues with their SoC


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1 minute ago, madmaltese said:

Haven't looked back at past systems but isn't 11m by March 31st still insanely high? 15M in first 4 or so months of release would've been crazy. Wonder what metrics they are using to assess this demand. 

 

 

Yea 15 million in the first four months was a pipe dream by Sony.   11 million in the first four months is also ridiculously high. 

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With clocks that high, who's to say it's going to get much better.  They could have real issues meeting demand in 2021 :francis: 

 

The yields on these chips are exactly the reason why MS was smart to release a less powerful console to make use of those SoCs which don't make the cut as Series X chips.

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7 minutes ago, Goukosan said:

Yea 15 million in the first four months was a pipe dream by Sony.   11 million in the first four months is also ridiculously high. 

Funny part is this isn't a reduction in their expectations of demand, it is literally a forced decision due to being unable to produce that number.

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Just now, madmaltese said:

Funny part is this isn't a reduction in their expectations of demand, it is literally a forced decision due to being unable to produce that number.

 

That's PR......11 million is this alot though. 

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Just now, Goukosan said:

 

That's PR......11 million is this alot though. 

Maybe. Could be a way to generate a perceived rarity for an item that seems to still have a large supply at launch. 

 

But this is bloomberg reporting and not a Sony financial report or statement.

 

Either way, just better get my pre order 

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4 minutes ago, madmaltese said:

Funny part is this isn't a reduction in their expectations of demand, it is literally a forced decision due to being unable to produce that number.

Why is that funny?

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1 minute ago, madmaltese said:

Maybe. Could be a way to generate a perceived rarity for an item that seems to still have a large supply at launch. 

 

But this is bloomberg reporting and not a Sony financial report or statement.

 

Either way, just better get my pre order 

Put it this way.... before COVID-19 hit.... hitting 15 million system produced and shipped was an unrealistic goal for the first four months.   Once Covid19 hit.... that basically became an impossibility. 

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4 minutes ago, Remij said:

Why is that funny?

Funny was the wrong word. But some of this news is with headlines of Sony cutting down production without the details why and it can be viewed as a decision to cut back supply as opposed to a forced issue. Meaning Sony still very much feel there is a 14m demand

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Just now, madmaltese said:

Funny was the wrong word. But some of this news is with headlines of Sony cutting down production without the details why and it can be viewed as a decision to cut back supply as opposed to a forced issue. Meaning Sony still very much feel there is a 14m demand

Of course the demand is there.  They can produce as many units as they want and they will all sell.

 

The problem is that they don't want to over produce for the moment given the terrible yields that's costing them a LOT of extra money.

 

But make no mistake.. they absolutely are being forced to cut production due to yields.  The latest prediction by some analyst (I forget which company they work for) is that PS5 will cost $449 and the DE $399.. so they're going to be taking a big hit if yields are this bad.

 

It sounds like this could remain an issue throughout 2021 though.. which could definitely hurt their ability to meet demand.

 

I think the higher clocks kinda fucked them because Sony has no other uses for their SoC.. if they don't meet the required spec.. they're garbage essentially.  That costs a lot of money.   But at the same time... Sony is also apparently paying big bucks to secure 747 airliners full of PS5 stock to make sure that supply remains saturated.

 

11M is still a massive amount to be sure.  The price still hasn't been announced though, so I wonder if these bad yields will cause them to possibly bump up the price a tad?

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2 minutes ago, Remij said:

Of course the demand is there.  They can produce as many units as they want and they will all sell.

 

The problem is that they don't want to over produce for the moment given the terrible yields that's costing them a LOT of extra money.

 

But make no mistake.. they absolutely are being forced to cut production due to yields.  The latest prediction by some analyst (I forget which company they work for) is that PS5 will cost $449 and the DE $399.. so they're going to be taking a big hit if yields are this bad.

 

It sounds like this could remain an issue throughout 2021 though.. which could definitely hurt their ability to meet demand.

 

I think the higher clocks kinda fucked them because Sony has no other uses for their SoC.. if they don't meet the required spec.. they're garbage essentially.  That costs a lot of money.   But at the same time... Sony is also apparently paying big bucks to secure 747 airliners full of PS5 stock to make sure that supply remains saturated.

 

11M is still a massive amount to be sure.  The price still hasn't been announced though, so I wonder if these bad yields will cause them to possibly bump up the price a tad?

I think they would've wanted to but won't due to the prices of XSS and XSX. The fact they are spending even more of flying in their units also suggests they are going to be price aggressive imo. We'll find out soon enough though.  399/499 would be amazing. 

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2 minutes ago, madmaltese said:

I think they would've wanted to but won't due to the prices of XSS and XSX. The fact they are spending even more of flying in their units also suggests they are going to be price aggressive imo. We'll find out soon enough though.  399/499 would be amazing. 

Yea they're expecting massive amounts of units to be sold so it's probably going to be an attractive price point.. all considering.

 

A $399 DE will push the market to adopt digital even faster than it is already.  That SKU is going to sell like crazy.

 

I'd like to know what allocations of those 11M consoles are standard vs digital.  What do you think?

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1 minute ago, Remij said:

Yea they're expecting massive amounts of units to be sold so it's probably going to be an attractive price point.. all considering.

 

A $399 DE will push the market to adopt digital even faster than it is already.  That SKU is going to sell like crazy.

 

I'd like to know what allocations of those 11M consoles are standard vs digital.  What do you think?

Yeah I'm dying to know this too. I'm wondering if they are gonna be dicks and create 'shortages' of the disc edition to force ppl into a DE. Bloody hope not. I want a disc edition. 

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13 minutes ago, madmaltese said:

Yeah I'm dying to know this too. I'm wondering if they are gonna be dicks and create 'shortages' of the disc edition to force ppl into a DE. Bloody hope not. I want a disc edition. 

You'll get one.  I wouldn't worry about that lol

 

But I would expect them to nudge it in that direction for sure.

 

Thing is... with the Backwards compatibility of these next gen consoles, you'd expect people to still purchase the standard editions over the Digital only ones for the most part.  In Sony's case, if there's only $50 difference between them, I'd expect the vast majority to be disc editions.. but if there's somehow a $100 between them then you know they're serious about pushing people to digital only.

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Just now, Remij said:

You'll get one.  I wouldn't worry about that lol

 

But I would expect them to nudge it in that direction for sure.

 

Thing is... with the Backwards compatibility of these next gen consoles, you'd expect people to still purchase the standard editions over the Digital only ones for the most part.  In Sony's case, if there's only $50 difference between them, I'd expect the vast majority to be disc editions.. but if there's somehow a $100 between them then you know they're serious about pushing people to digital only.

There's also the issues that yous prob don't experience much, but in Europe and Aus, digital prices are still SIGNIFICANTLY higher than retail. Eg, day 1 prices on PSN are $99.99AUD yet I can walk into numeorus retail stores or buy from Amazon to get it $69AUD. 40% increase to buy digitally is ridiculous. i can see many simply not getting one is they only had the DE edition available. 

 

For what it's worth though I am starting to think they do that $100 diff between the systems. They'd make back the money so quick on the DEs.

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2 minutes ago, madmaltese said:

There's also the issues that yous prob don't experience much, but in Europe and Aus, digital prices are still SIGNIFICANTLY higher than retail. Eg, day 1 prices on PSN are $99.99AUD yet I can walk into numeorus retail stores or buy from Amazon to get it $69AUD. 40% increase to buy digitally is ridiculous. i can see many simply not getting one is they only had the DE edition available. 

 

For what it's worth though I am starting to think they do that $100 diff between the systems. They'd make back the money so quick on the DEs.

Really?  God damn why?  You'd think they'd have regulations in place to put an end to that.

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3 minutes ago, Remij said:

Really?  God damn why?  You'd think they'd have regulations in place to put an end to that.

Because $99.99 is the actual MSRP. So that's also the price for games at EB Games here. However nearly every other retailer like Target, JB Hifi, Big W and now amazon always have new day releases for $69. Would love to make the switch to digital but now way am I gonna do it and pay so much more for my games. 

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