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Rumor: Sony Plans Limited PlayStation 5 Output in First Year

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Sony Plans Limited PlayStation 5 Output in First Year

 

Sony Corp. plans to produce far fewer units of its upcoming PlayStation 5 in its first year than it had for the previous-generation console’s launch, according to people familiar with the matter.

 

The Tokyo-based tech giant is limiting its initial production run in part because it expects the PS5’s ambitious specs to weigh on demand by leading to a high price at launch, the people said, asking not to be identified because the subject is private. The global Covid-19 pandemic has affected Sony’s promotional plans for the new device but not its production capacity, they added.

 

The company has told assembly partners it would make 5 to 6 million units of the PS5 in the fiscal year ending March 2021, according to other people involved in the machine’s supply chain. When Sony released the PlayStation 4 in November 2013, it sold 7.5 million units in its first two quarters.

 

The PS5’s loftier price tag may also deter initial take-up. Game developers who’ve been creating titles for the next PlayStation anticipate its price to be in the region of $499 to $549, and Bloomberg Intelligence’s Matthew Kanterman points to increased component costs pushing up the price required for Sony to break even. Sony has struggled with its price-setting decision for the PS5 because of scarce components, Bloomberg News has reported.

 

A Sony spokesman declined to comment. Its shares were largely unchanged in afternoon trade.

 

https://www.bloomberg.com/news/articles/2020-04-16/sony-is-said-to-plan-limited-playstation-5-output-in-first-year

 

 

Edited by DaivRules
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Unfortunately what happens when supply gets very limited, there will be people buying up as many units as possible and selling them online at a ridiculous price increase

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Except that such a move would make absolutely no sense from a business perspective - every PS5 not sold shall offer a potential customer to Microsoft.

 

We’re not talking about some very exclusive machine like the 20th anniversary PS4. The PS5 will drive Sony’s success (or failure) in the console market for the next six to eight years, which is a very competitive one as we all know.

 

Personally, I highly doubt that this information is genuine...

 

Edited by Neef-GT5
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Expect some disgusting scalpers on eBay...

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12 minutes ago, MaxieM0us3 said:

Expect some disgusting scalpers on eBay...

Nothing wrong with making a profit with luxury items. People are choosing to pay those higher prices instead of waiting.

 

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So the question is how do they determine how much a country gets of this limited supply for PS5's

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A good chance for anyone to make some money by buying a few of these consoles and resell them, still a gamble though because it will be tricky to predict how many units are actually in demand. Decreasing the number of units produced is definitely the right way to go, most people currently will not put a high priority on a new entertainment system that does not come with a lot of new must buy games, especially not if said games are bound to appear on PS4 too for quite a while as well, just like it was with the PS3 when the PS4 released.

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If the choice is a low spec product to reduce risk and get a faster return on investment or, due to limited supply of components at this time, a limited run, then I’m very glad they went for the limited run.

 

Then, if due to the impending recession and people possibly being in fear for their jobs, they anticipate lower demand, this also makes sense.

Edited by thefourfoldroot
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It was either this or delay the console altogether. Sales were probably going to be weaker than the PS4's anyway due to the current economic situation, especially since the PS5 is likely to be a lot more expensive at launch.

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Wasn't planning on buying it this year anyway, they probably would be better on delaying the system until 2021 with the way things are currently are going and probably would give them some more time to work on things as well.

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On 4/16/2020 at 5:40 AM, VigilantCrow said:

Nothing wrong with making a profit with luxury items. People are choosing to pay those higher prices instead of waiting.

 

 

That's not the problem... its them emptying the stock with multiple accounts so you are left out buying it as soon as it's up

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I'd love it if Amazon, Facebook Marketplace, and Ebay implemented their policy of not allowing these to be sold by Unauthorized sources, like they do for Apple products. That would help curb a lot of people creating artificial scarcity by buying just to profit off reselling. 

 

Also, doesn't Sony ordering anything except infinite units mean they're limiting PS5 output? What's the manufacturing capacity and whats the distribution pipeline bandwidth and timeline? 

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They are limiting based on demand projections, not supply related.

 

It is true it could make for a resellers market ala PS3 launch if they miscalculated (underestimated) demand.

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Sony Corp. plans to produce far fewer units of its upcoming PlayStation 5 in its first year than it had for the previous-generation console’s launch

 

Looks like this rumor fell flat considering the PS5 has outsold the PS4 in the same timeframe according to their latest financial reports.

 

Of course some people were also trying to further the rumor that this really mean something else, but goal post moving is a thing when people are just trying to drum up rumors for attention.

 

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