The Chinese publication BusinessToday, apparently referring to sources within the production chains, paints a rather critical picture regarding consumer electronics in this quarter and in particular the consoles, with PS5 which would have been halved And Xbox blocked for the entire period in question.
It is not easy to establish the veracity of the information, also because the article in question is automatically translated from Chinese and could therefore contain further errors caused by the translationbut the reasons could be plausible.
Essentially, both Microsoft and Sony would end up with overabundant supplies of Xbox and PS5, which would have led the two companies to reduce or in the case of Xbox Series
Sales below expectations and excess inventory?
The main reason would have been sales below forecasts during the Christmas period, so part of the stock would have remained unsold and would therefore cover the need for new units for the following quarter as well.
It's a situation that doesn't just affect consoles but also laptops and computers consumer electronics in general, with the need to free up inventories which would be common to several companies that deal with this area.
Sony has reportedly sent notifications to this effect to the Hon Hai factory and the producers Delta Electronics and Lite-On, asking to reduce the production of new PS5 units by 50%, from 1 million to 500,000 units, while Microsoft would have informed Pegatron and Hon Hai, as well as Qundian and Lite-On to “completely suspend production of Xbox in the first quarter,” apparently.
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