[ad_1]
Entertainment and electronics giant Sony plans to produce far fewer units of its next PlayStation 5 console in its first year compared to plans it had for the launch of the previous-generation console, according to Bloomberg.
Tokyo-based technology is limiting initial production in part because it expects the PS5’s ambitious specs to weigh on demand by leading to a high-priced launch, say people familiar with the matter who have chosen to remain anonymous. .
The COVID-19 global pandemic has affected Sony’s promotional plans for the new device, but not its production capacity, they add.
The company has instructed assembly partners of its plans to produce 5 to 6 million units of the PS5 in the fiscal year ending March 2021. The PlayStation 4 released in November 2013, by comparison, sold 7.5 million units sold in its first two quarters. .
It is believed that the PS5’s lighter retail tag may deter initial console pickup. Game developers who have been working on titles for the console have anticipated that its price will be around $ 499 to $ 549. The PS4 launched at $ 399. According to BloombergMatthew Kanterman, this large price increase from the previous generation is due to the high production costs of the PS5. To break even, Sony has to raise console prices.
Sony has been struggling to set a final price for the PS5 since February, with some analysts believing it could even sell at a loss.
Sony’s current strategy appears to be to rely on existing PS4 models as a bridge to attract new users to the PlayStation platform’s network subscription service, while the PS5 continues to be in limited supply.
Sony currently sells the PS4 for $ 300 and the high-end PS4 Pro for $ 400. The company may reduce these prices at the time of the PS5 launch to stimulate new subscribers to the PlayStation Plus membership program and the PlayStation Now game streaming service, according to people close to Sony.
Kenichiro Yoshida, Sony’s CEO, says the company will aim to increase recurring revenue rather than one-time hardware purchases.
Bloomberg suggests that the production volume of the PS5 could still change depending on the situation of COVID-19. Sony has been asking its employees to work from home to mitigate the infectious spread of the virus, and its board has yet to meet to approve business plans for the current fiscal year. Initially, the meeting was supposed to take place in March.
Last month, Sony said it plans to release the results for the year ending March 30 on April, but may be forced to delay the date due to the pandemic.
The virus has been forcing Sony to override its promotional plans, hastening the unveiling of its new DualSense PS5 controller. It has also negatively affected Sony on the software front, with the company warning that game production lines may also be delayed. Recently, Naughty Dog, one of Sony’s top game developers, indefinitely delayed his latest project, The Last of Us Part II. The game was meant to be one of the first titles on the PS5.
Still, Sony is unlikely to delay the release of the PS5 from the critical end-of-year shopping season. As long as archrival Microsoft doesn’t delay the launch of its next-gen Xbox, which is also expected later in the year. Sony will not delay as long as Microsoft does not delay.
Edited by Luis Monzon
Follow Luis Monzon On twitter
Follow IT News Africa On twitter
[ad_2]
