Sony is being cautious with the PlayStation 5 as it pursues an end-of-the-year launch.
Sony may be treading on thin ice when it comes to the PlayStation 5. The COVID-19 pandemic has shut down almost every major business operation in the world, and as economies plummet, one can only assume that people would be less receptive to expensive gaming consoles in a time when people are mindful of their spending.
Now, it has been revealed that Sony will be constraining the initial production of the PS5 next-generation console due to the pandemic. Not only that, the company’s promotional plans for the product had also been greatly affected.
Limited production of PlayStation 5 units
It was earlier reported that Sony Corp. would only produce around five to six million units of the PS5, and this is considerably much lower than when the PS4 was released. It should be remembered that back in 2013, Sony had produced 7.5 million units of the PS4 during its first two quarters.
But with the pandemic causing a global recession, Sony may find it hard to sell their next-gen consoles if they attach a grander price on it. Unfortunately, the cost of the materials to make the console may push Sony to do just that in order for them to breakeven.
The pandemic is preventing Sony from making board decisions
Sony had joined the numerous companies around the world that chose to continue working at home in order to help prevent the spread of the virus. However, because of the challenges posed by the distance, Sony’s board is unable to make concrete decisions regarding its plans for the PS5.
The COVID-19 has ruined Sony’s promotional plans
The promotion has become a challenge not just for Sony but for every other company out there due to the coronavirus outbreak. With people fearing infections, hosting a public press conference is now out of the question for Sony.
Because of this, the company may probably only hold virtual press conferences in order to unveil the console, its price and release date.
Just recently, Sony had no choice but to unveil the DualSense controller for the PS5 ahead of schedule. This is because the controller’s appearance had already been shared with a great number of people, and Sony may not be able to prevent its leak. For the PlayStation 5, however, only a few trusted people actually know what the console would look like.
Sony’s new strategy of selling the PS5
Because of the virus and its economic repercussions, Sony will no longer focus on trying to sell the new console in bulk. Instead, it would rely on the current Playstation models and use them as a gateway to increase interest in the new PS5.
The prices for the PS4 and the PS4 Pro are currently around $300 and $400, respectively. But that may all change once the PlayStation 5 launches. It is highly speculated that prior to the release of the PlayStation 5, Sony would cut the prices for the older models in order to get people to buy them.
This will be done in order to get more people to join Sony’s Playstation Plus program as well as its Playstation Now game-streaming service. The company will be banking on the interest garnered by these actions hoping to elevate recurring sales rather than one-time big-time purchases.
PS5 price and release is still highly dependent on Microsoft’s Xbox Series X
Sony is expected to launch the PS5 by the end of this year, and that definitely won’t change unless there is an alteration of Microsoft’s plan with the Xbox Series X, the PS5’s rival, which is also slated to launch later this year.
Analysts say that the competition between the two consoles may ultimately lead to both companies selling the PlayStation 5 and the Xbox Series X at a loss.