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Sony has reportedly paused production of PSVR 2, as it looks to clear its backlog of inventory first before resuming.

According to a Bloomberg report, PSVR 2 sales have “slowed progressively” since its February 2023 launch. Citing people familiar with the company’s plans, Sony has produced “well over 2 million units” since launch, noting that stocks of the $550 headset are building up.

The report alleges the surplus is “throughout Sony’s supply chain,” indicating the issue isn’t confined to a single location, but is spread across different stages of Sony’s production and distribution network.

This follows news that Sony Interactive Entertainment laid off eight percent of the company, which affected a number of its first-party game studios also involved in VR game production. Sony entirely shuttered its London Studio, which created VR action-adventure game Blood & Truth (2019), and reduced headcount at Firesprite, the studio behind PSVR 2 exclusive Horizon Call of the Mountain.

Meanwhile, Sony is making PSVR 2 officially compatible with PC VR games, as the company hopes to release some sort of PC support for the headset later this year. How and when Sony will do that is still unknown, although the move underlines just how little confidence the company has in its future lineup of exclusive content just one year after launch of PSVR 2.