DFC Intelligence has analyzed the current status of the next generation of consoles from Sony and Microsoft, the intelligence firm is predicting that PS5 and Xbox Series X will suffer from Coronavirus and a 2020 release won’t happen. DFC Intelligence forecasts that some consoles might launch but with a higher retail price.
DFC Intelligence is a company dedicated to providing market research reports, they were established in 1994, but according to their website, they core team members add up to 100 years of combined experience in the game and digital media industry.
Coronavirus is likely to have a major short-term impact on the delivery of both systems. There is a strong likelihood one or both systems will not make a 2020 launch. If the systems do launch, supply will likely be constrained and initial pricing could be higher than expected.
Currently, the economy is in an unprecedented state of uncertainty. Even if the situation clears up in a few weeks, the ability to manufacture and release a high-end new game system has already been severely impacted.
The good news is that consumer demand is likely to be stronger than ever. Demand will far exceed supply and long-term that could increase overall sales. In addition, the abundance of government and public caution should help assure this is a comparatively short-term crisis.
Both the PlayStation 5 and Xbox Series X will release to record consumer demand. The challenge Sony and Microsoft face is making sure they release systems that meet expectations. Given the current situation, waiting to make sure they get the initial product right is the most prudent choice.
Sony, Microsoft and Nintendo are suffering from a depreciation in the stocks market, a delay of the next generation of consoles is almost inevitable. Announcing a delay of the Xbox Series X and PS5 will land a huge blow to the finances of both companies, so it’s expected that they will be avoiding confirming a delay until it’s inevitable.
Nintendo has already admitted delays in the manufacture of new Switch consoles due to Coronavirus, “it is expected that production and shipment delays will be inevitable for peripheral devices such as the Nintendo Switch and Joy-Con”. Nintendo of America has also send it’s entire workforce to self-quarantine after one employee was diagnosed positive for Coronavirus.
E3 2020, GDC 2020 and other gaming events has been cancelled. Esports has also suffered the impact of the virus, League of Legends Pro Circuit, Overwatch League and Call of Duty League live events has been cancelled in favor of online events.
The outbreak of the virus is just at the beginning, a few weeks ago the big three remained silent while they analyzed the situation, the gaming industry must adapt to this crisis in order to continue their operations ahead of what it was destined to be one memorable year for all players. Now investors must be understandably anxious, the World Health Organization officially classified Coronavirus as a global pandemic, the gaming industry is now facing the challenge of sending employees to their homes to avoid further contamination.