It seems like neither Microsoft or Sony had a good Christmas last year with large amounts of unsold consoles, due to lower than expected demand. This is now getting consequences, and according to Businesstoday (via Install Base), both companies are now slashing their production output.
Sony is expected to cut the production in half for the entire Q1 (going from 1 million units/month to just 500 000) with Microsoft reportedly asking for "the first quarter of the Xbox complete shutdown", meaning no new consoles will be produced during Q1. Both of these are pretty damning as a cut of 50% shows that Sony has fundamentally miscalculated the demand for the console, or worse, interest has waned among potential new buyers. And for Microsoft it's even worse. Pausing console production momentarily isn't new (happened to GameCube back in 2003), but it's a really bad sign showing low interest from gamers - and might also explain while we're getting a new strategy from Xbox next week.
Even though the source is good, it's still no official confirmation. And while bad Christmas sales are alerting, Xbox Series S/X has been selling at almost the same pace as Xbox One, while PlayStation 5 has enjoyed a very good generation so far. Hopefully it isn't a trend, but a temporary hiccup.