playstation 5 supply

Sony’s Likely to Manufacture Limited Number of PlayStation 5 Consoles at Launch

In its first year on the market, PlayStation 5 consoles may roll out in limited quantities. By the end of the fiscal year, which falls in March 2021, Sony plans to manufacture between five to six million PS5 systems. Comparatively, the PlayStation 4 moved about 7.5 million units in its first two quarters. The decision to limit supply is in part due to the company’s expectation that PS5’s specs will hike up the price, thus affecting demand at the outset. Coronavirus is dealing quite the blow to the tech giant’s intentions as well, specifically with regards to marketing.

Bloomberg reports that those familiar with Sony’s operations predict a hefty price tag for the new hardware. Reportedly, developers working on the PlayStation 5 anticipate costs somewhere between $499 and $549. As previously noted, Sony’s having to compete for components continues to create its own adverse affect. According to Bloomberg Intelligence’s Matthew Kanterman, the cost of said components also contributes to the price bump.

This may further inform the corporation’s decisions concerning current-gen hardware. Those familiar with Sony’s strategy told Bloomberg the plan is to position PS4 and PS4 Pro as a bridge to next-gen. As a result, the PS4’s current price of $300 and PS4 Pro’s $400 price tag may drop near the launch of PS5. Apparently, Sony hopes such a move will encourage more players to buy into PS Plus and PS Now subscription services.

Not everything is set in stone as of yet, however. Depending on the coronavirus situation, plans for the PlayStation 5 supply could indeed change. Either way, mass production of the new console begins this June. And, as previously indicated, SIE’s CEO and President Jim Ryan reportedly insists on a simultaneous launch around the globe. As of now, that launch remains on schedule for holiday 2020.

While coronavirus may not impact PS5’s release date, it’s certainly causing issues for promotion. Due to ongoing infection concerns, Sony is unlikely to host a press event for the console’s official reveal. After all, the DualSense announcement came about in a rather impromptu fashion. Bloomberg reports the controller’s unveiling served as Sony’s attempt to preemptively avoid leaks, as developers are just now getting their hands on the device.

Interestingly, Sony will likely maintain PS5’s holiday 2020 launch so long as Microsoft does the same for Xbox Series X, according to Bloomberg sources. Analysts suspect such competition, particularly in the US, will culminate in the two consoles being sold at a loss. Macquarie Capital analyst Damian Thong echoed this sentiment, predicting a cost of $450 USD for both.

[Source: Bloomberg]