Japanese magazine Shukan Gendai claims in its latest issue that Sony has halted production of its PSX as of the start of April. The story is seemingly confirmed by the following statement from a Sony spokesman, quoted in the magazine: "Depending on demand [of the PSX], we will resume production when necessary. We are currently in the process of adjusting the inventory and assessing when to resume production."
Sony's great silver/white hope had a troubled gestation period, and its first few months at Japanese retail have been tough too. The digital media hub suffered a downgrading of its features not long before its release, including non-compatibility with CD-R and DVD+RW playback, no facility to view TIFF and GIF files, and no support for mp3 files or PlayStation Broadband, amongst others. February 2004 witnessed Sony's partial re-addressing of these omissions, but still the sceptics were not convinced.
How big the aforementioned "inventory" is hasn't been revealed to us, but we'll bet our bottom Yen that there's a hefty amount of units to shift before production of the PSX resumes.