The Xbox Series X and PS5 could be delayed by the coronavirus outbreak

midian182

Posts: 6,436   +56
Staff member

The coronavirus has resulted in several manufacturing giants in China, including Foxconn, face disruption as they quarantine employees, ask some to work from home, or temporarily shut down plants. In a recent note from Jefferies Group (via Business Insider), the financial services firm warns that the longer these shutdowns go on, the more likely the next-gen consoles will be delayed or, at the least, suffer from restricted stock.

"The video game sector is currently manufacturing, or beginning to, a once-in-several-years' product generation change for the 2020 holiday season," reads the note. "If [company] shutdowns exceed a month or so, game schedules will be delayed. New consoles may likewise suffer supply issues from a prolonged disruption, ahead of their Fall 2020 planned launches."

Although most games are developed in North America, Europe, and Japan, large sections get outsourced to China. According to the note, as much as 30 to 50 percent of art creation in Western games is done in China. Things are even more concerning when it comes to hardware manufacturing, almost 100 percent of which takes place in China.

Sony, Microsoft, and Nintendo said that 96 percent of consoles imported to the US in 2018 were produced in China, highlighting how the coronavirus crisis could affect PS5/Xbox Series X manufacture, resulting in limited stocks or delays.

Nintendo has already said Switch console, accessory, and game shipments have been delayed in Japan due to the virus, and the Switch version of The Outer Worlds has been postponed as Chinese developer Virtuos, which is behind the port, has temporarily shut down. The outbreak has also affected iPhone production, has seen tech giants restrict worker travel, and caused LG and Ericsson to pull out of Mobile World Congress.

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QuantumPhysics

Posts: 4,358   +4,632
It’ll get here when it gets here.

But it better have some damn pretty launch EXCLUSIVES or else it will have the impact of a summer breeze.
 

kira setsu

Posts: 285   +220
Better to delay things then risk worker's health over video games. It can wait.

As an aside, I didn't realize so much of the development of the games themselves was outsourced to China, too. The more you know...
so much is built there its insane, only reason the coronavirus is getting its attn really, people may not get their stuff OH NOES!

maybe companies will wise up and expand their sources after this, but most likely they wont because that involves mentioning higher prices which scares the everloving s**t outta people.
 

Irata

Posts: 1,238   +1,970
Agreed.
It almost makes you wonder though, if its some intentional population control fiasco.
I don't believe that, but I still crosses my mind.
Thought of that, as well, since supposedly older weakened persons have a particularly high mortality rate and China has a problem with an aging population. Don't believe it either.

However the Doctor who first alerted to the Virus and just died from it did not look that old, so maybe the "it just affects those who are old and already sick" line was just to make the Virus appear less dangerous.
 
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Irata

Posts: 1,238   +1,970
maybe companies will wise up and expand their sources after this, but most likely they wont because that involves mentioning higher prices which scares the everloving s**t outta people.
But how much higher would the prices really be if that is the only issue here ? Let's say it would double the manufacturing cost - but what percentage of the end price does manufacturing represent?

The problem is much rather skill / experience and supply chain. If you outsource everything then in the end there is almost no one left who knows how to do it.
 
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Vulcanproject

Posts: 1,308   +2,241
More time to test. Microsoft used to boast about how quickly they turned Xbox 360 from design to production to launch.

So it then suffered major stock shortages for the first 6 months. Billions of dollars lost because of the RROD debacle. Finally in house memos and articles appeared highlighting how rushed and badly engineered it was.

If they don't come until spring 2021 instead of holidays 2020 it won't necessarily be a terrible thing, for the software too.
 

Ryan Barrett

Posts: 41   +10
That's what you get when you rely soley on a country that all but uses slave labor. There's a reason there are suicide nets outside those factories.
 

kira setsu

Posts: 285   +220
But how much higher would the prices really be if that is the only issue here ? Let's say it would double the manufacturing cost - but what percentage of the end price does manufacturing represent?

The problem is much rather skill / experience and supply chain. If you outsource everything then in the end there is almost no one left who knows how to do it.
the way I see it, how much does the end cost burden the buyer, if it was food I'd be ready to fight because no one should struggle to eat.

but this is technology, no one's buying a television/xbox/gpu every week, so if the price goes up a bit because more skilled people are building the product I dont see the issue honestly.

imho it may help if prices on those items went higher, it would lead to longer product lives and less waste, also wouldnt have people chasing the latest thing to keep up with others, and hopefully it would let companies actually work on bigger leaps than the incremental updates we get nowadays.
 
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Malakai2k

Posts: 39   +11
Here come the excuses, they didn't let them have sick days before and this virus shouldn't be any different.
 

etempest

Posts: 48   +32
Here come the excuses, they didn't let them have sick days before and this virus shouldn't be any different.
Or they are so sick large chunk is physically absent for extended period of time, with a some people strait up dying. It's a bad situation.