Sony's PS5 production is Losing the Game

15/09/2020

Today is the Apple event, 15.09.2020. Apple is going to introduce new devices including the Apple Watch, iPad, and a pair of over-the-ear headphones, which is going to be the company's first time having such a product. This is most definitely not going to be Apple's last season this year; the second event, and arguably a more-watched event, is scheduled later this fall and of course, iPhone will be the focus of the consumer's market. Historically, Apple would host an iPhone event at the beginning of September; however, due to the Corona Virus, the production has been inevitably slowed down, so this year, the tech giant has to hold off. Another meaningful change this year is that the Apple event will be held virtually to address COVID-19 concerns, and luckily for the Apple fans, it will be streamed live on YouTube for everyone. Considering all the changes, Apple shares rose 4% since yesterday.

The markets opened unchanged today still waiting for the Fed's meeting results. Investors are following any hint about the US economic growth outlook and how the bank is trying to encourage inflation from the two-day policy meeting which started on Tuesday 15.09.2020.

Investors also wait for news from the Banks of Japan and Bank of England who will announce their policy decisions on Thursday 17.09.2020

Sony corporation halves its PlayStation 5 production from 11 million to approximately 4 million units. The electronic giant boosted orders are waiting for the demand to grow in the gaming industry for the holiday season simply because people spend more time at home due to the lockdowns caused by the Corona Virus. Despite the possible demand, the company faced many difficulties in its production line, sometimes as low as 50% in the SOC (System On a Chip) production, said sources who would like to remain anonymous as Sony declines to make an official comment. Sony shares dropped to 2.4% on Tuesday, which is the lowest level since July.

“If the news is accurate, we would view the reduction as negative,” Citigroup analysts including Kota Ezawa wrote in response to the report that Sony is heavily revising its sales plans.

Oil prices opened lower on Tuesday 15.09.2020 struggling by lower international demand just before an OPEC+ meeting this week.