In this photo instance the PlayStation 5 logo seen displayed on a smartphone.
Rafael Henrique | SOPA Images | LightRocket | Getty Images
SINGAPORE — Shares of Japan’s Sony cut following a report that the company is reducing its estimated production for its PlayStation 5 gaming console.
The stock traded fro 1.8% lower Tuesday morning, recovering from losses earlier in the session when it fell more than 3%.
The change residences came after Bloomberg reported, citing people familiar with the matter, that Sony slashed its sensed PlayStation 5 production for the fiscal year by 4 million units. The report said the reduced outlook was related to production emanations with the custom-designed system-on-chip (SOC) for the console.
Bloomberg said the Japanese electronics powerhouse has been facing manufacturing progenies, with production yields as low as 50% for its SOC.
Sony did not immediately respond to CNBC’s request for comment.
The latest development make for a acquires as Sony gears up for its next-generation console battle against Microsoft. The rival recently released pricing details for its new Xbox calms which are set to launch in November.
While Sony has not yet announced pricing details for the PlayStation 5, the PlayStation blog is bedeviling a showcase scheduled for Wednesday.