The delay of next-generation consoles is inevitable, according to a new report from games industry research firm, DFC Intelligence. The coronavirus pandemic has already led to the cancellations of major gaming events, including the GDC and E3 2020, as well as indefinite delays.
The shutdown of factories in China due to COVID-19 has sent shockwaves across the world, and supply chain issues will also affect the release of Sony's PlayStation 5 and Microsoft's Xbox Series X.
PS5, Xbox Series X release delayed?
As reported by Forbes, DFC Intelligence released a statement and forecast for the upcoming consoles, pointing out that the Xbox Series X and PlayStation 5 will not be ready in time for their current holiday 2020 launch owing to global economic slowdown caused by the coronavirus outbreak.
"Coronavirus is likely to have a major short-term impact on the delivery of both systems," states DFC. "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."
The report added that there is a great deal of uncertainty as far as the economy is concerned given the current situation. Even if the spread of the virus simmers down eventually, the damage has already been done.
"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 report noted.
The virus has crippled factory essentials coming out of China, which in turn, has caused major disruptions across the tech industry. So it is safe to say that product launches will be affected, be it the PS5 or the upcoming iPhone.
However, the outcome remains unclear, whether the release of the Xbox Series X or PlayStation 5 will be delayed or there will be limited availability. While Sony and Microsoft partner AMD maintains that both consoles are on schedule for a release this year, the company is not the only component supplier, and the rapidly-spreading COVID-19 situation across the globe raises further doubts about the consoles making the holiday 2020 deadline.
Strong demand expected for both consoles
Although the release date may or may not be pushed to 2021, DFC Intelligence expects strong demand for both systems when they do launch. "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," the report stated.
"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."