Sony (NYSE:SONY) has reportedly stopped the production of its PSVR2 headset until it gets rid of unsold units, Bloomberg reported, citing people familiar with the plans.
Shares rose 2.2% in mid-afternoon trading on Monday.
Since the PlayStation VR2 was released on Feb. 22, 2023, Sony has produced more than 2M units. Shortly after its release, however, sales of the $550 device have dropped significantly, Bloomberg said, citing the people.
Sony did not immediately respond to a request for comment from Seeking Alpha.
News of slow sales for its VR headset come a few weeks after Sony said it was letting go roughly 8% of its workforce in its Interactive Entertainment unit, which houses PlayStation, as sales for the gaming division remain weak.
“[T]he industry has changed immensely, and we need to future ready ourselves to set the business up for what lies ahead,” Jim Ryan, President & CEO, Sony Interactive Entertainment, wrote in a blog post regarding the layoffs.
Sales of the PlayStation 5 came in about a million units lower than expected in the third-quarter, at 8.2M consoles. In the third-quarter of 2022 the company sold 7.1M units.
Investment firm Macquarie downgraded Sony’s shares following the outlook cut.
