The Corona virus is currently circulating in China and has already caused thousands of deaths. Now there are increasing rumors that this virus could lead to a release postponement of the announced Playstation 5 and Xbox Series X – Sony and Microsoft will probably have their consoles manufactured in high-production China. The panic is fueled by the media, which hardly think a step further.
According to recent reports, quarantine in China is causing multiple production downtimes, including Nintendo and Apple. The production facilities were closed due to the risk of infection. Many now believe that this epidemic could cause the PlayStation 5 and Xbox Series X to be delayed in the upcoming winter. We noticed this in early February in the gossip factory that this is so far only scaremongering. Mass production in one of the Chinese factories has not yet started. Both Sony and Microsoft can start production in other plants, even outside of China, without any problems. This is a huge advantage for Sony and Microsoft right now. A good example of this is that Sony does not rely on Foxconn’s manufacturing facilities in China. As early as 2013 there were PlayStation 4 models, which were manufactured in Japan to meet the high demand for pre-orders. If the contract is awarded to them, Foxconn also has production sites worldwide in Brazil, Japan, Mexico, India, South Korea, as well as in Europe and the United States. The price of the next-gen consoles is also not yet fixed and any additional costs can still be allocated to the MSRP. A production in Europe would cause a maximum of 5 – 10 percent additional costs, which both companies would initially accept as “zero profit”.
Sony and Microsoft are currently considering exactly where they will start their production in order to be able to offer enough next-gen consoles on the market in the coming winter. A disaster like we had in 2013 when there weren’t enough consoles will be avoided by both at all costs. Production can also be designed for many smaller plants, which are then logistically summarized. If only one of the two has to accept a postponement of the release due to the Corona virus, the latter has already lost the race for the next-gen consoles.
We shouldn’t let the panic of a postponement of the release of the two consoles come to us, just as little as to get infected with the Corona virus. Take care of your health, because even one flu can cause more deaths than the corona virus.
