The CEO is looking at the world wide economy wondering if people are going to have extra money for non-essential items. If you don't think every company is weighing this right now you're delusional.
-
Ever wanted an RSS feed of all your favorite gaming news sites? Go check out our new Gaming Headlines feed! Read more about it here.
-
We have made minor adjustments to how the search bar works on ResetEra. You can read about the changes here.
Microsoft CEO Satya Nadella on Xbox supply chain “On the supply side we are getting back on rails, but demand is an issue." due to Covid-19
- Thread starter Proven
- Start date
The CEO is looking at the world wide economy wondering if people are going to have extra money for non-essential items. If you don't think every company is weighing this right now you're delusional.
It's a cautious outlook because they have no idea what consumer buying power will look like this holiday season.
You literally do only mention MS in your comment, how is he supposed to read your mind?
This. That was a weird insinuation since Sony just updated their PS5 page literally yesterday on this topic and MS is still saying they still plan for keeping their launch date too. As such I expect they both still launch holiday 2020 as planned since they're both still talking about it even with everything going on.
This.
i can only hope we are coming out of this crisis by the end of the year but many people won't have the necessary money to buy a possible 500 or above dollar console. it might suck but its possible that both ms and sony delay the console to next year so they can have a stronger launch.
Unemployment may potentially increase? You might want to talk to a few more people, because the numbers who have recently lost their jobs due to mandatory shutdowns are already staggering. There are always some who are relatively unaffected, many of whom might be prime candidates for adopting new technology early, but it's difficult to estimate numbers. My guess is that launch will still look pretty healthy but that year two is going to be rough by historical standards. How fast economic recovery will take from an individual perspective is much harder to estimate, and of course it's tied in some ways to how recklessly we decide to pursue productivity at any cost as individual societies.
What will be fascinating is seeing whether Microsoft attempts to get Lockhart out at the same time or nearly so, and what the relative sales of the two SKUs look like. I can't decide if it will swing toward Lockhart for economic reasons, or if those affected will just stick with the Xbox One for now and Series X will move a lot of units to those who were already in great shape and are therefore relatively immune from the short-term effect on the economy.
Last edited:
I'm sure you've heard the expression pay attention to what they do, not what they say. They seem to be slow walking the rollout of the PS5 and I don't think it's crazy to wonder if thats because they're feeling some uncertainty about whether they're going to ship in 2020.
If Lockhart does launch and it comes out alongside the XSX I think it's going to be the go to console for the early years of the gen because of the recession, at least in North America and assuming it can launch at $299-349.
Lockhart might be a blessing in disguise if we go into full bore global recession. But it needs to be priced right.
Most retail stores & online shops are going to limit XSX's to one per customer, & the same for PS5.
If this economy continues going south, I see them being pushed back much further to one of those years.
Last edited:
Yup, scalpers are just waiting but they will have a ton of toilet paper they will have to offload first.
Nothing you say seems to want to make sense other than hedging bets Microsoft will be out of position either way. Many have also analyzed the PS5 and think they too won't be able to hit $400. Nobody seems to want to announce price first but someone will have to eventually. Phil Spencer said they will not be out of position on price or power so we will just have to wait patiently.
OP
OP
Yeah, that was my first thought too. Probably the perfect storm for a cheaper next-gen SKU.