Leading market research firm DFC Intelligence has said that there is a “strong likelihood” of next-gen consoles suffering from delays as the novel Coronavirus continues to spread and disrupt global supply chains.
DFC Intelligence echoed a note Jefferies Group sent to its investors in the beginning of February, adding that as authorities around the globe struggle to control the virus, there’s “unprecedented state of uncertainty.” Travel and other form of restrictions imposed by several countries have impacted trade and supply lines as well.
DFC Intelligence wrote:
Coronavirus is likely to have a major short-term impact on the delivery of both systems. 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.
Currently, the economy is in an unprecedented state of uncertainty. 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 company believes that when they do launch, the PlayStation 5 and Xbox Series X will experience a strong demand.
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. In addition, the abundance of government and public caution should help assure this is a comparatively short-term crisis.
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.
Sony and Microsoft have yet to comment on these reports.