Benzinga | Nov 11, 2021 08:30AM EST

Sony Cuts PlayStation 5 Production Outlook

* Sony Group Corp (NYSE:SONY) slashed its PlayStation 5 production outlook for this fiscal year due to component and logistics constraints, Bloomberg reports.

* Sony previously aimed over 16 million units assembled in the year ending March to achieve its sales goal and get a head start on the subsequent year's production.

* Sony cut that number down to about 15 million, making its aim of 14.8 million PS5 sales by March difficult.

* Sony's manufacturing partners assume the PlayStation 5 to remain in tight supply through 2022. Producing enough units to achieve the target of 22.6 million sales in the next fiscal year will be challenging.

* Rival Nintendo Co Ltd (OTC:NTDOY) cut its full-year sales forecast for the Switch console family by 1.5 million units in early November.

* Chipmakers from Toshiba Corp (OTC:TOSYY), which provides such power chips to Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM), find it unlikely for the fabrication situation to normalize even during 2022.

* Price Action: SONY shares closed lower by 0.83% at $121.45 on Wednesday.