According to a Reuters report, the company has already shifted half of its console production to two Chinese facilities run by Taiwanese electronics components makers Hon Hai Precision Industry and Asutek Computer.
Nearly all of Sony's PS2 production will be moved to China in the next business year, said Sony spokesman Kenichi Fukunaga. Sony will consign manufacturing to the local factories of mainly these two existing partners, he added.
Currently, Japan accounts for about half of Sony's PlayStation 2 output. With the move, Fukunaga said that company will only make consoles in Japan if there are spikes in demand or if special editions are released.
In addition, he quelled rumors in some Taiwanese media reports of an earlier-than-expected launch of PlayStation 3. The reports said the firm was set to introduce the successor to the PlayStation 2 at the end of this year, two years ahead of Sony's previously announced schedule.CNET Asia's Winston Chai reported from Singapore.