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A report claims that the PlayStation 5 and Xbox Series X launches will be pushed out of their expected windows due to the novel coronavirus pandemic (via Forbes).
The video game industry is one small slice of the global economy that is facing significant challenges as a result of the pandemic. Nintendo has seen delays and stock shortages for the Switch, and numerous events have been cancelled to reduce risk to attendees and employees. Most recently, the ESA called off E3 2020 owing to “overwhelming concerns” about the disease, and companies are enacting measures to minimise exposure to the coronavirus, like digital events and remote working.
“When looking at games consoles specifically, we note that 96 per cent of video game consoles imported into the U.S. in 2018 were produced in China. Whilst companies such as Nintendo have moved some manufacturing abroad, China still accounts for the majority,” said analyst Daniel Ahmad. This new report from DFC Intelligence supports his statements, and claims that there will be a “major short-term impact” on Sony and Microsoft’s next generation systems.
“There is a strong likelihood one or both systems will not make a 2020 launch. If the systems do launch, supply will likely be constrained and initial pricing could be higher than expected,” the market research firm surmises. “Currently the economy is in an unprecedented state of uncertainty. Even if the situation clears up in a few weeks, the ability to manufacture and release a high-end new game system has already been severely impacted.”
Yet, the success of the PlayStation 5 and the Xbox Series X should not be diminished due to a delay. “The good news is that consumer demand is likely to be stronger than ever. Demand will far exceed supply and long-term that could increase overall sales,” says DFC Intelligence. It also adds that the “abundance of government and public caution” will contain the crisis, and normality will return shortly. “The challenge Sony and Microsoft face are making sure they release systems that meet expectations. Given the current situation, waiting to make sure they get the initial product right is the most prudent choice,” it concludes.
The PlayStation 5 and Xbox Series X are expected to come out in late 2020.
