The ongoing Coronavirus outbreak could delay the launch of PlayStation 5 and Xbox Series X. In a note from Jefferies Group, seen by Business Insider, the financial services firm has warned investors of a delay in the release of the next-generation consoles.
Both Sony and Microsoft are gearing up to launch the PS5 and Xbox Series X later this year. However, given most consoles are being manufactured in China, the launch of the PS5 and Xbox Series X are expected to be delayed by the outbreak of Coronavirus in China.
“The video game sector is currently manufacturing, or beginning to, a once-in-several-year’ product generation change for the 2020 holiday season,” says the note from Jefferies Group.
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“If [company] shutdowns exceed a month or so, game schedules will be delayed. New consoles may likewise suffer supply issues from a prolonged disruption, ahead of their Fall 2020 planned launches.”
The death toll in China from the Coronavirus outbreak has exceeded 1000, with the total number of confirmed cases reaching as high as 43,000 at the time of writing this copy. The tech industry, in particular, has been severely impacted.
Big tech companies like Apple are starting to seel the disruption in their supply chain as the Coronavirus continues to spread. It has even disrupted MWC, the world’s biggest trade show related to mobile and telecom. A lot of brands including Vivo, Intel, Sony, Amazon, LG, and ZTE have pulled out of MWC over Coronavirus risks.
But one analyst claims that the Coronavirus epidemic is unlikely to impact Sony and Microsoft. It’s being said that both Sony and Microsoft could shift production to other countries such as Vietnam and Taiwan.
“Xbox and PlayStation don’t have to be produced in China, but obviously that is the lowest cost country,” Michael Pachter, a video game analyst with Wedbush Securities told TechRadar.
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