News Sony reduces its PlayStation 5 production forecast due to SoC issues

Why do low yields increase the cost of components for Sony? Unless they're self-fabbing (which I don't believe they are - thought it was AMD), I would have thought they pay for a set number of chips/level of yield and if the foundry can't deliver that, then that's their own cost.

 

Thought this had already been determined to be a false report?

 

Aye I thought Sony had already come out and refuted the claim.

 

Because thats how things work in large scale manufacturing. You prob can get a deal where you pay fixed amount only on good parts, but in that case the fab/manufacturer will calculate worst case yields and bill you close to that (Or will refuse to deal with you outright if you design is too complex). Or you can pay for raw materials & processing fees and eat losses yourself.

 

Yup, they've indeed denied it:
https://www.gamesindustry.biz/articles/2020-09-15-sony-reportedly-cuts-ps5-production-by-4m-units

 

Well, I did not know that.

Every day is a school day for me on this forum (although given my base starting point, that shouldn't be a revelation).