The COVID-19 pandemic raised early concerns about manufacturing delays for the PS5 and Series X, the disease's economic impact could force Sony and Microsoft to postpone the next-gen systems' releases for other reasons.
Reports going back as far as early February, when the novel coronavirus was largely contained to China and had infected only about 30,000 people, suggested the PS5 and Xbox could be delayed. The cited concern was that, since many consumer electronic products - including the PS5 and Xbox Series X - are manufactured in China, the community-wide shutdowns to quell the outbreak there could cause major delays in the construction of next-gen systems.
Around the same time, Nintendo announced sold-out at major retailers. By March 27, Sony still insisted the PS5's launch would be unaffected by the pandemic. But the numbers of global cases and deaths have multiplied by factors of about 3.7 and 5.5, respectively (according to Bloomberg and The New York Times), since it made that statement, reaching more than 2.4 million cases and 163,000 deaths at the time of writing. It's possible, then, that Sony would have a different take if it made that statement today.
How COVID-19 Could Affect The PS5 and Xbox Series X Launch
Just before Sony said it did not expect "any notable impact" on the PS5's launch, news broke that more than 3 million people filed for unemployment in the U.S. the week prior. The total number of jobless claims in the country has since grown to 22 million, according to The Washington Post, with experts predicting around 10% of America's people could remain jobless through the 2020 holiday season. This high unemployment rate could apply to many more countries around the world. According to the U.N.'s International Labour Organization (via the BBC), nearly 200 million people worldwide could lose their jobs in the second quarter of 2020, making this "'the most severe crisis' since World War Two."
Workers in the retail and manufacturing industries are at some of the highest risk for job loss, meaning predictions of PS5 and Series X delays could have some merit. A report from industry analyst DFC Intelligence in mid-March PS5 will be expensive and hard-to-find at launch.
But even if Sony and Microsoft are able to work around manufacturing impacts to get their new consoles ready by the end of 2020, there's still a chance they could delay the systems into next year. Because of those massive unemployment numbers, millions of people will lack the disposable income to spend on a fancy new console. With their potential consumer base shrunk, it might be safer for Sony and Microsoft to push back the PS5 and Xbox Series X's launch until the economy is more stable.
Yet, if Bloomberg's report is true, it seems at least Sony is planning to pitch the PS5 as a high-end, boutique product. Microsoft's plan to make Series X games cross-gen for a year suggests it may also be pivoting to a similar strategy. Rather than past console generations, which were sold as necessary upgrades needed to experience the latest games, it appears the PS5 and Series X could instead be d as optional luxuries for the most "hardcore" gamers and techies. In that case, many of those who would have been able to afford the systems in the first place may still be able to. Sony and Microsoft would then experience close to the launch sales they were expecting before the crisis, and the PS5 and Xbox's launch wouldn't need to be postponed.
The PlayStation 5 and Xbox Series X are planned to launch in the 2020 holiday season.
