Sony To Make About 27% Fewer PlayStation 5 Consoles Due To Chip Constraints: Report


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Sony Corporation (NYSE:SNE) has cut production estimates of its PlayStation 5 console for the current financial year by 4 million, down to 11 million, Bloomberg reported Monday.

What Happened: The Japanese electronics giant’s plans to increase orders with its suppliers hit a roadblock, as it faces manufacturing hurdles like production yields for its system-on-a-chip (SOC) slipping to 50% lows, people familiar with the matter told Bloomberg.

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The Tokyo-based conglomerate reportedly had upped its manufacturing projections due to an uptick in its PlayStation Plus subscription service and robust summer sales of “The Last of Us: Part II” and “Ghost of Tsushima” games.

The production yields have been gradually improving, according to Bloomberg's sources.

Why It Matters: Sony is expected to release the pricing for the new console at a video presentation due Wednesday, noted Bloomberg.

Nintendo Co, Ltd (OTC:NTDOY) is planning to release an upgraded version of its Switch console, which will support 4K output in 2021, Bloomberg reported.

A major Sony rival, Microsoft Corporation (NASDAQ:MSFT), has already revealed the pricing of its new Xbox Series S console, which is priced at an estimated $299 per unit and will be released on Nov. 10. 

Price Action: Sony shares closed 0.9% higher at $77.72 on Monday and gained 0.84% in the after-hours session.

Photo courtesy: Sony Corp.
 


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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