Sony appears to have real confidence in the PlayStation 5, as it’s increased production on the next-gen platform. Previously, the Japanese giant had planned to ship between 5-6 million units by the end of March 2021; it now expects that number to be somewhere in the region of 10 million during the same time period. This is significantly more than the 7.5 million units that the PlayStation 4 managed during its first two quarters on the market.
So, what gives? Well, clearly the platform holder expects demand for the device to be huge, and that’s reflected by the sky-high social media engagement that it’s been getting all year. The system has repeatedly broken records, whether it’s the logo on Instagram or the recent reveal livestream becoming one of the most watched in YouTube history, consumer interest is clearly already there. With a strong software slate including Marvel’s Spider-Man: Miles Morales, that enthusiasm is only going to grow.
But as you’re all no doubt aware, this has been a strange year. Coronavirus has thrown the world for a loop, and many will find themselves unemployed as Christmas approaches. The economic challenges could hinder the PS5’s launch, but Sony may see things differently: with more people committing to home entertainment, there could also be increased interest in the Japanese giant’s next-gen system.
There are other factors to consider as well. The platform holder may feel that, with the world in such uncertain times, it’s best to produce as many units as it possibly can while it can – after all, a second wave of COVID-19 could potentially halt production entirely, at which point it’ll want to have systems stockpiled. Furthermore, it’s worth remembering that PS4 was heavily stock constrained during its first Christmas, and this is something Sony will want to avoid.
Moreover, boss Jim Ryan has hinted that we should expect a global launch for the PS5, which means that key regions like Japan will be included. The manufacturer famously decided to delay the launch of the PS4 in its home territory, so it’s going to need much more stock if it’s targeting a true worldwide release.
And then, of course, there’s the price: increased production is good news because it suggests that Sony’s hit a PS5 price that the majority of consumers will be comfortable with. There had been some concern that the system could go over $500, but it’s unlikely it’d need to produce this many units if that turns out to be the case. The bottom line here is that the platform holder is going big, and we wouldn’t be surprised if it achieves the all-important 10 million units install base milestone by Spring next year.
[source bloomberg.com, via twitter.com]
Comments 35
I'm buying all of them then reselling them on eBay with a modest "service charge".
I'm not surprised, there seems to be a bigger buzz around next gen then there was for PS4/Xbox One. I can't even remember a single game around launch that I was excited for back then but there are liat this time round
@carlos82 well of course Knack. No Knack 3 for launch is an outrage.
Just waiting for preorders to go up at game UK then I’m on it.
I was fully preparing for a 500 quid PS5 but im not so sure anymore, does anyone think they might pull a nice little surprise on the price? Maybe 450 for the standard and 400 for the digital, it seems a bit more realistic all of sudden.
@gmxs This does suggest that maybe they've got the price somewhere they are very happy with.
Price is an important part of supply and demand. So if they're expecting a high demand, then hopefully the price will be a bit better than what some of us are fearing.
I actually spend less money because most of the time, I'm at home. I'm more excited for product that make me less bored while at home like ps5
good s**t Sony 👌👌
the more the merrier
@Incarna I didn't know they revealed the price to you.
Even if I lose my job at the end of the furlough period and I’m still unemployed when the PS5 comes out. I’ll still be getting one day one regardless of price.
Come on Sony let me order the damm thing. Shows early reports to be false also. They also demonstrated and showed they can make a console in 30 secs that's rapid. So as long as the parts are available there shouldn't be an issue.
I'm going to buy the physical disc version regardless. But I'm interested in SSD storage space. Maybe the default size is way to small (to cut costs) and that you can upgrade for a hefty prize by buying a PS5 proprietary SSD.
It sounds almost to good to be true if they sell the console under €400. There has to be a catch, right?
I think both Sony & Microsoft will surprise people with their prices, cheaper than everyone thinks. Both Sony & Microsoft will want people on their new systems, with COVID19 they know most people cannot afford high prices. It's not really Hardware where the money is made anyway, its Software & subscriptions.
There are tons of people like me that have an old PS4 hitting 7 years now. Easy to justify an upgrade.
Also have saved tons in the last 3 months. No restaurants, bars, Concerts, Sports, Movies... we are not going on Holiday this summer.
I am fine with spending a bit of that cash on replacing something I am using everyday at home.
@gmxs apparently it's $450 to make a ps5 but when you add on tax and the retailers profit percentage. I'm thinking £500 in the UK and that's if Sony decide not to make a profit of each unit.
@get2sammyb Good article looking at a range of factors. Except 1.which I brought up in the previous article, and would have fit nicely into your last paragraph. Maybe, maybe the PS5 will be too expensive for many, and a lot of this new supply will be the cheaper PS5 DOE?
You really need to stop writing these articles like the PS5 is one thing when it's 2. And regardless of the difference in price between them, DOE will be cheaper than the disc PS5.
@Octane Prices, plural. Why does everyone keep treating PS5 like it's only 1 console?
As long as the price isn't ridiculous I don't see why demand wouldn't be high. That reveal event was great and given there will be a Spider-Man game at launch, an RE game within the first year and possibly Ratchet & Clank, along with a few others, the PS5 could be set up to get off to a better start than PS4 had in terms of software for the first year.
@carlos82 That depends on what you mean by "around launch" because I remember being very excited for Infamous Second Son. Even though I got the PS4 on launch and Infamous came out 4 months later, it was definitely the system seller for me.
I expected this, they are looking and wanting to transfer as much as the ps4 base to the ps5 base as soon as possible. But as long as they offer a concrete launch selection they have me day 1.
"and that’s reflected by the sky-high social media engagement that it’s been getting all year"
Can someone forward me the memo on when it is and isn't acceptable to listen to social media users?
@ThaBEN it’s Microsoft who are only selling proprietary drives.
You can install any sufficiently speedy drive that physically fits into the m.2 slot. Sony is going to be releasing information on supported drives at a later date.
@darksoul77 how could you possibly know the cost when they haven’t even done a full breakdown of parts in it?
Gaming-related stuff has been booming all year. If Sony's smart, they'll take a bit of a hit on the consoles and fast track this system into homes ASAP. They make the majority of their money on games and subs anyway, and they're likely see a substantial boost in profits from those digital PS5s.
@rjejr Because only one matters
@FamManDan94 around launch is pretty self explanatory but around that time it didn't seem a big improvement over what we had. You have the PS3 finishing off with the likes of The Last of Us, Bioshock Infinite and GTA V, with PS4 starting with Knack, Killzone Shadowfall and some marginally better looking versions of games coming out for PS3 anyway. I'm not saying nobody was excited, just this time there seems to be a much bigger leap forward in technology and the games shown already look very exciting and a big step forward from what we have today
@MarcG420 it's what bloomberg reported.
@darksoul77 for all you know this could be information given to throw Microsoft off of their real pricing plans. Things like that are done in business all the time, especialy with the information coming from unnamed “sources”.
You can’t take that report seriously.
Edit: also mysteriously absent was any mention of the second presumably cheaper to manufacture model. Which would further encourage skepticism on the reported information.
Not only that but by ordering a higher production number at once Sony may be able lower unit prices as a result. You know economies of scale blah blah...
PS5 I'm already interested. PS4 only got me hooked when they said it was £350 instead of £600 😬. I'm hoping no more than £450 for the disk version but we'll have you wait and see.
@carlos82 Yeah and tbh it didn't pick up an awful lot from there. For me the game I'm looking forward to most with PS5 is Destruction Allstars. I don't necessarily need amazing photorealistic graphics to feel like this is a new gen. Graphics has come a long way in 10 years. I just want to feel the game more. Gaming for me this generation became less enjoyable and more expensive than ever and I'm hoping this generation fixes those things.
I would like to think 499 for the disc version at most if its anything less then ill be happy and won't feel so shocked when they do release a price well thats what i feel in my opinion anyway, rather aim higher than lower.
Sony will you just announce the price and start taking pre-orders PLEASE!!!
Just take my damn money
Given that they've amped up the production number, it can only mean one thing. That they have reached a price that they feel most people are willing to spend. I'm personally speculating a $450 USD for the standard and $400 USD for the digital version. I would be willing to drop $500 on it but not everyone got to keep their jobs during this global issue.
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