Sony stock stumbles after company reportedly cut estimate for PlayStation 5 production

SINGAPORE — Shares of Japan’s Sony fell following a report that the company is reducing its estimated production for its PlayStation 5 gaming console.

The stock traded about 1.8% lower Tuesday morning, recovering from losses earlier in the session when it fell more than 3%.

The moves came after Bloomberg reported, citing people familiar with the matter, that Sony slashed its estimated PlayStation 5 production for the fiscal year by 4 million units. The report said the reduced outlook was related to production issues with the custom-designed system-on-chip (SOC) for the console. 

Bloomberg said the Japanese electronics powerhouse has been facing manufacturing issues, with production yields as low as 50% for its SOC.

Sony did not immediately respond to CNBC’s request for comment.

The latest development comes as Sony gears up for its next-generation console battle against Microsoft. The rival recently released pricing details for its new Xbox consoles which are set to launch in November.

While Sony has not yet announced pricing details for the PlayStation 5, the PlayStation blog is teasing a showcase scheduled for Wednesday.