(Source: CCN)
“As over 90% of the game consoles from Sony and Microsoft are manufactured in China, the disruption caused by the COVID-19 outbreak will influence the game console market. However, we do not believe the launch of PlayStation 5 and Xbox Series X, scheduled for later this year, could be postponed to next year so easily. We believe they can have some buffers to rearrange the components and supply, shifting production to other countries in the meantime.” – Liz Lee
Challenges for Sony and Microsoft: –
- Sony and Microsoft previously confirmed their new models will be shipping in year-end holiday 2020 but have not detailed the exact launch schedule.
- As the manufacturing of the upcoming products will not start until 2Q20, there will be no launch or supply issues unless the outbreak exceeds the end of 2Q20.
- As these are highly profitable products, companies will try and ensure the launch of the consoles is not delayed, and they can meet the strong demand ahead of the busy Christmas period.