PlayStation 5 price and launch to include limited production

Bloomberg reported today that the Sony Corporation is going to produce far less PlayStation 5 units at launch then it has in any previous generation console launches. Several issues are affecting this decision including the price and availability of components and of course the nationwide pandemic COVID-19.

Sony sold 7.5 million PlayStation 4’s at launch from November 2013 to March 2014. According to Bloomberg Sony’s manufacturing partners were notified PS5 initial production would be around 5 to 6 million units in the fiscal year ending March.

The Coronavirus has wreaked havoc on gaming conventions this year and Sony has been unable to execute its promotional plans for PS5. Production capacity has not been affected but the volume could change depending on the COVID-19 situation.

Internal parts are very expensive and the PS5 features new technologies that are rare in today’s market. Sony seems to be struggling with a price announcement looking between an initial price tag of $499 – $549. PS4 was $299 at launch in 2015 and the PS4 Pro was $399 at launch in 2016.

“I think both the PS5 and Xbox Series X may end up at US$450 even though they would lose money at that price,” said Damian Thong, an analyst at Macquarie Capital.

Sonys’ board of directors were unable to approve the PS5 launch plans at their March meeting due to the pandemic. Sony also announced quarterly figures due to release on April 30th will possibly be pushed back to a later date.

Manufacturers have already begun delivering internal components to PS5 assemblers, who are scheduled to begin mass-producing by June. Sony PlayStation’s chief Jim Ryan has made it clear that the PS5’s launch should be simultaneous around the globe. According to Bloomberg’s sources, Sony will only delay the launch of the PS5 if Microsoft delays the Xbox Series X  which is expected to hit stores during the holidays.

The hype is real we are getting next-gen consoles this year!

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