Playstation 3 Allocation to Japan Cut by 20 Percent

Sony cuts the allocation of Playstation 3 console gaming systems to Japan by 20% due to shortages.

Sony Corp. continues to have problems surrounding the launch of their Playstation 3 (PS3). Due to production shortages and time constraints, Sony has been forced to reduce the number of units being shipped for the launch by 20,000.

The delay will not affect shipments into the United States, which is currently set to receive 400,000 units. Instead, Sony has decided to reduce the number of PS3's slated for Japan from 100,000 to 80,000.

Notably, the company is already planning to sell the units at a loss, with the 20GB model priced at $430. That's not an uncommon practice for game-system vendors, though, who make up the loss through software and licensing sales.

Add to this their problems with the battery recalls and Sony is now facing a 94% profit loss this quarter, and now the troubles in the gaming division will add to Sony's woes.