GPU manufacturing stalling PSP production

TOKYO--In Japan, the sight of people playing with Sony PSPs on trains or waiting in lines is becoming increasingly common. However, the handheld is still difficult to come by at retailers. In fact, despite shipping 510,000 units in 2004, Sony issued an official apology to customers for the lack of units on its Web site a few days after Christmas.

Most reports have cited component shortages as the reason why Sony can't increase the production rate of the PSP. At a press conference in Tokyo yesterday, Sony Computer Entertainment CEO Ken Kutaragi disclosed exactly which component was limiting manufacturing of the handheld: its graphic chip. Sony produces the PSP's GPU at its own fabrication plant in Japan. However, according to Kutaragi, increasing the production rate of the PSP graphic chip can't easily be done, since it is being manufactured with a complex 90-nanometer process.

Kutaragi also further outlined Sony's plans for the US PSP launch. As reported yesterday, the unit will "probably" arrive in March, and Sony plans to ship 3 million units before April 1. Demand in the US is expected to be even greater than it was in Japan, but whether Sony can ship more than 3 million units will depend on how quickly it can produce the PSP's graphic chip.