Sony considers scaling back PlayStation 5 launch and shipping up to two million fewer consoles as it fears demand will be lower amid coronavirus pandemic
- Sony is considering scaling back its plans for the PlayStation 5 launch
- The company is planning to ship between five million and 6.5 million consoles
- That would be one to two million fewer than it shipped with PlayStation 4
- The company is uncertain how an expensive gaming console will sell amid widespread unemployment caused by COVID-19 shutdowns
- Learn more about how to help people impacted by COVID
Sony has scaled back the number of PlayStation 5 units it plans to ship this fall, as COVID-19 shutdowns have added new complications to the company’s promotional game plan.
The company is currently planning to ship between five and six million units of the console through March 2021, significantly less than the 7.5 million Playstation 4s the company shipped to retailers over the same period in 2013.
The decision appears to be related both to worries about consumer demand in a depressed global economy, and unexpected price spikes for some components caused by COVID-19 shutdowns.
Sony is reportedly considering shipping fewer PlayStation 5 consoles this fall amid concerns about price point and component costs while unemployment skyrockets due to COVID-19 shutdowns
According to a report from Bloomberg, the company has told its assembly partners to expect a smaller initial run of the console through the end of the current fiscal year on March 31, 2021.
Though Sony has yet to announce an official release date or price point for the upcoming console, the company has targeted a late fall date in line with the November launch date of both the PlayStation 3 and PlayStation 4.
Based on technical specs released for the console so far, analysts have predicted a likely price point of anywhere form $449 to $599, substantially higher than the PlayStation 4 launch price of $399.
According to Bloomberg, Sony’s board of directors had been scheduled to meet in March to review and approve business plans for the coming fiscal year, including the launch plans for PlayStation 5.
That meeting was canceled as members of the board weren’t able to travel to the meeting and the company decided against organizing a virtual meeting, leaving the PlayStation’s teams final plans in limbo for the time being.
Some have worried about how well a high-priced entertainment device will sell as tens of millions of people in the US find themselves newly unemployed.
More than 22 million Americans have filed for unemployment insurance in the first four weeks of widespread COVID-19 closures, and its unclear when, or if, many of the retailers, restaurants, and other businesses will reopen.
In the past, games console manufacturers often sold hardware at a loss, hoping to recoup revenue through the licensing fee game publishers pay to release a title for a specific console.
Sony had previously scheduled a board of directors meeting for March, where plans for the coming fiscal year were expected to be approved, but the meeting was canceled after COVID-19 forced businesses to shift to remote working
Over the last 10 years, Sony has shifted away from this strategy and tried to ensure its games consoles either break even or generate a small profit, something that could conflict with its desire to produce cutting edge gaming devices.
‘We must keep PlayStation 5’s bill of materials under our control and we need to make the correct number of units in the initial production,’ Sony financial officer Hiroki Totoki said.
Even without a final release date or launch price, Sony has slowly released new information about the console.
The company recently unveiled the console’s controller, dubbed the ‘Dual Sense,’ which will have haptic feedback built into its triggers.
In March, a technical presentation revealed the console will also support 3D audio output in an attempt to create sound effects that more closely match the visual detail of newer games.