• Thu. Dec 1st, 2022



Sony Slides – but AMD Doesn’t – After Report of PlayStation 5 Setback

Sony  (SNE) – Get Report stock is slipping after a report of a PlayStation 5 production setback. But processor supplier AMD  (AMD) – Get Report is brushing off the news.

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.

Like Microsoft’s  (MSFT) – Get Report Xbox Series X and Series S – they’re also powered by AMD SoCs and are set to go on sale Nov. 10 – the PS5 is expected to be available by this holiday season. 

Prior reports indicated that Sony was upping its PS5 production plans in response to elevated gaming activity and spending driven by covid-19 lockdowns.

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.

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