It can, but the impact it has depends on distance and width. If you are shooting at a 3" target at 50 yards, that 1/8" will be critically important. If you are shooting at a 15" target that is 5 feet away, a small movement is probably not going to matter.

Since the primary purpose of my SD9VE is for home defense, I'm not worried about my ability to hit a small target at 50 yards with it. If I can achieve acceptable accuracy at close range, what you would typically encounter in a home or car situation, and it is safe and reliable, then I am satisfied with this gun. For target shooting or competition, I wouldn't be...but that's not what this gun is for.