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Business Insider: next-gen consoles may suffer from supply constraints and possibly delays due to the coronavirus

AshenOne

AshenOne

Member
Feb 21, 2018
6,112
Pakistan
This holiday season, the next PlayStation and Xbox consoles are scheduled to arrive .

But thePlayStation 5 and the Xbox Series X, just like much of the world's consumer electronics, are being manufactured in China. And China is currently the focal point of the Wuhan coronavirus outbreak.

Of the more than 560 people who have died from the virus, all but two fatalities have been in mainland China. Over 28,000 people were reported as infected as of Wednesday .

China's manufacturing sector, which is responsible for producing the vast majority of the world's consumer electronics, has been hit particularly hard. Foxconn, the manufacturing giant that produces the iPhone, is quarantining workers . At least one supply chain executive told Nikkei Asian Review that , "The [coronavirus] situation in China could affect the planned production schedule" of the next iPhone.

Similarly, as Microsoft and Sony ramp up production of their next-gen consoles, those launches could see delays or, at least, constrained launch supply due to the coronavirus outbreak.

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"The video game sector is currently manufacturing, or beginning to, a once-in-several-years' product generation change for the 2020 holiday season," a note from Jefferies Group published this week says."If [company] shutdowns exceed a month or so, game schedules will be delayed. New consoles may likewise suffer supply issues from a prolonged disruption, ahead of their Fall 2020 planned launches."

Put more simply: Next-gen consoles, and the games being produced for those consoles, may get hit with delays due to the coronavirus outbreak.

Though most major video games are made in North America, Europe, and Japan, large components of those games are outsourced to China. As much as "30-50% of art creation in western games is done in China," according to the note. In terms of the hardware itself, nearly 100% of the manufacturing takes place in China.

Notably, Nintendo has outright announced production delays due to the coronavirus outbreak shipments of the Nintendo Switch console are delayed to Japan, the company announced this week.Both Sony and Microsoft didn't respond to request for comment on potential next-gen console delays due to the virus outbreak.
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Source: Pulselive.co.ke
 
Thewonandonly

Thewonandonly

Avenger
Oct 25, 2017
4,251
Utah
Weird OT but ok šŸ˜‰

Na but for real I could see this happening but I would rather have the workers be safe then my console on the holidays for sure!!!
 
Earvin Infinity

Earvin Infinity

Member
Oct 27, 2017
6,891
China's manufacturing sector, which is responsible for producing the vast majority of the world's consumer electronics, has been hit particularly hard. Foxconn, the manufacturing giant that produces the iPhone, is quarantining workers. At least one supply chain executive told Nikkei Asian Review that, "The [coronavirus] situation in China could affect the planned production schedule" of the next iPhone.

Similarly, as Microsoft and Sony ramp up production of their next-gen consoles, those launches could see delays or, at least, constrained launch supply due to the coronavirus outbreak.

"The video game sector is currently manufacturing, or beginning to, a once-in-several-years' product generation change for the 2020 holiday season," a note from Jefferies Group published this week says. "If [company] shutdowns exceed a month or so, game schedules will be delayed. New consoles may likewise suffer supply issues from a prolonged disruption, ahead of their Fall 2020 planned launches."

Put more simply: Next-gen consoles, and the games being produced for those consoles, may get hit with delays due to the coronavirus outbreak.
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LordofPwn

LordofPwn

Member
Oct 27, 2017
4,402
not really surprising but they would still be months away from even beginning production right?
 
Serene

Serene

Community Resettler
Member
Oct 25, 2017
52,549
They'll sooner have barely any stock than delay the launches entirely
 
RoninStrife

RoninStrife

Banned
Oct 27, 2017
4,002
:/ please no.
I hope we get this under control asap. At the same time.. this could sink China, destabilize the entire world and well, at that point they'd be alot more to worry about than the next gen consoles.
But for now.. I hope the Chinese government appeals for more international help, because this will boil over otherwise and turn into a catastrophe otherwise.
 
Nugnip

Nugnip

Member
Oct 25, 2017
2,744
Nintendo already announced it's having an impact on their ability to provide the Animal Crossing Switch to the Japanese market. It's only the beginning, and it's not really like things were getting better.
 

Deleted member 437

Banned
Oct 25, 2017
11,039
For Sony, I could 100% see a delayed Japanese launch and only launch in Canada, USA, and a couple select european countries. Basically places that they compete with Microsoft in.
 
TitlePending

TitlePending

The Fallen
Dec 26, 2018
5,340
Jumpman23 said:
Pre-orders going to be worth some serious cash if true.
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UNPOPULAR OPINION INCOMING: This would give justification for Sony and MS to charge higher prices initially because it would dis-incentivize scalpers while maximizing their profits.

Like how Taylor Swift prices her concert tickets higher than other artists. And yes, I understand that the consumer electronics market is NOT like the live performance market. But something novel to potentially discuss.

Taylor Swift's "Reputation" tour, which kicked off last week in Glendale, Ariz., is a test case in squeezing out scalpers and capturing more profits from ticket sales.

The strategy, which could reset how tickets to high-profile tours are sold, is to use aggressive pricing to limit the ability of scalpers to purchase tickets and later sell them at higher prices. In addition, a program from Ticketmaster is aimed at giving passionate fans earlier access to tickets at discounted prices.
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Secretofmateria

Secretofmateria

User requested ban
Banned
Oct 27, 2017
8,424
That would certainly be dissapointing, but we would just need to suck it up and know that it ensures the safety of these workers therefore its worth while. If anything, i could see both systems coming out in march/april of next year instead.
 
EvilBoris

EvilBoris

Prophet of Truth - HDTVtest
Verified
Oct 29, 2017
16,686
LordofPwn said:
not really surprising but they would still be months away from even beginning production right?
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Im sure certain components are already being produced right now, but even if you aren't taking about the physical production. Then the planning of the production, the productions test, the tooling and the infrastructure used to produce all of the components that make a console are going to be delayed even if it's simply because the engineers, designers and management of a production firm or facility aren't able to work as normal
 
Chaosblade

Chaosblade

Resettlement Advisor
Member
Oct 25, 2017
6,599
Consoles getting a paper launch would be funny honestly. Becoming even more like PC!
 
MeltedDreams

MeltedDreams

Member
Oct 27, 2017
7,963
After Switch news this is to be expected. Bunch of dudes will end up selling next-gen consoles on ebay at crazy high prices.
 
Detective Pidgey

Detective Pidgey

Alt Account
Banned
Jun 4, 2019
6,255
I actually didn't realize that a lot of the stuff comes from China. Well if the delays happen, they happen. I honestly won't lose sleep over it. Hope the virus problem gets sorted as soon as possible, stay safe China. I'm lucky as hell to be living in Holland where it's not a problem.
 

Deleted member 17402

User requested account closure
Banned
Oct 27, 2017
7,125
I wonder if the big players would be happy with a delay if it meant their competitors wouldn't beat them to market, so that they could also cheapen the cost of the console's production by the time they do produce it.
 
Detective Pidgey

Detective Pidgey

Alt Account
Banned
Jun 4, 2019
6,255
One thing though, how far in China has the virus spread now to? It's not only Wuhan right?

Also, is it possible that this is why Sony is so silent or does it have nothing to do with that?
 
LordofPwn

LordofPwn

Member
Oct 27, 2017
4,402
EvilBoris said:
Im sure certain components are already being produced right now, but even if you aren't taking about the physical production. Then the planning of the production, the productions test, the tooling and the infrastructure used to produce all of the components that make a console are going to be delayed even if it's simply because the engineers, designers and management of a production firm or facility aren't able to work as normal
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good points.
 
nekkid

nekkid

Banned
Oct 27, 2017
21,823
Big question as well is how well decontaminated the manufacturing of stuff is, and how long the virus survives on surfaces.
 

lupinko

Member
Oct 26, 2017
6,154
Detective Pidgey said:
One thing though, how far in China has the virus spread now to? It's not only Wuhan right?

Also, is it possible that this is why Sony is so silent or does it have nothing to do with that?
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The Japanese national who came back with the coronavirus apparently didn't go to Wuhan. I read that in I think a BBC article or something.
 

Deleted member 59519

Banned
Aug 26, 2019
6,342
Detective Pidgey said:
One thing though, how far in China has the virus spread now to? It's not only Wuhan right?

Also, is it possible that this is why Sony is so silent or does it have nothing to do with that?
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John Hopkins University built a dashboard that updates how the virus is spreading geographically (in real-time).

ArcGIS Dashboards

ArcGIS Dashboards
gisanddata.maps.arcgis.com gisanddata.maps.arcgis.com

Hubei Province (where Wuhan is located) accounts for only 20,000 of the 28,000 reported infections. But the actual numbers are probably much higher as many go unreported.

EDIT - Beaten
 
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