The PlayStation 5 Mass Production and Its Implications on Price

Sony is gearing up to launch the PlayStation 5 console, but due to shipping constraints and logistical delays, there are concerns about meeting high demand. According to people familiar with the matter, a large proportion of Sony's consoles are made in China and sent out via cargo around the world, which can take months for shipping to travel from China to the US and Europe. This has been an issue for Nintendo earlier this year, where they had trouble refilling stock of their popular Switch console due to similar shipping constraints.

The production of the PlayStation 5's Dual Sense controller is also expected to be a challenge, with Sony requiring 10 million units by March next year. The original plan was to produce 5-6 million controllers for 5-6 million consoles, but it appears that Sony will need to increase production to meet demand. Assembling 5 million units by the end of September and another 5 million between October and December is now expected, with a large portion of the latter tranche turning into stock for 2021 due to logistical delays.

To overcome these challenges, Sony may consider using air cargo for faster delivery, as they did in 2013 around the launch of the PlayStation 4. However, airlines are currently running vastly reduced schedules due to COVID-19, making this an ideal situation in terms of logistics. Despite these expectations for high demand, the manufacturing might not be able to meet it, which could impact the price of the console.

The price of the PlayStation 5 is a topic of speculation, with some predicting that it could be as low as $400, which would be the same as the PS4 when it launched. However, due to inflation, this seems unlikely. It's possible that Sony might charge $450 for the diskless digital version and $500 for the one with the disc. The Xbox Series X is also expected to launch at a similar price point, with some speculating that it could be $500 or higher.

The PlayStation 4 had better sales in its early days due to being $100 cheaper than the Xbox One, which led to many games becoming PS4 exclusives. This has resulted in Sony having a stronger lineup of exclusive titles compared to Xbox. As a result, more people may be drawn to purchasing a PlayStation console, which could impact demand for the new console.

As a gamer and industry expert, I believe that $500 would be a decent price point for the PlayStation 5, especially considering the increased production costs due to COVID-19 and other factors. However, it's possible that Sony might lower the price as soon as they start streamlining their production line. Ultimately, only time will tell what the final price of the PlayStation 5 will be.

The uncertainty surrounding the PlayStation 5 launch has raised concerns among gamers about how much they're willing to pay for a console. Some may be hesitant to spend money on a console that is still experiencing logistical delays and high demand, while others may be willing to wait and see what Sony ultimately decides on pricing. The question remains: would you be willing to pay $500 or more for the PlayStation 5, or would you have to hesitate due to these uncertainties? Share your thoughts in the comments below.

"WEBVTTKind: captionsLanguage: enyou may remember just a few months ago how there was talk about how Sony would potentially have to limit the amount of PlayStation fives they manufacture this year for a couple reasons first because of the whole corona virus affecting China and their supply lines earlier in the year and also because of the corona virus people would be wanting to save money they'd be less willing to spend it and this would just create a economic depression or recession essentially so sony was talking about very much limiting the amount of playstation fives they'd make they didn't expect to sell as many so we have this article that's from April 15 2020 and they were talking about how Sony had at the time planned to produce far fewer units of its upcoming PlayStation 5 in its first year then it had for the previous generation consoles launched and it says specifically the company had told assembly partners it would make 5 to 6 million units in the fiscal year ending March 2021 so that's not even necessarily 5 million by the end of the year and it also says when Sony released the released the PlayStation 4 in November of 2013 Jesus that long ago doesn't even feel like it it sold seven and a half million units in the first two quarters now we come to today or well yesterday is when this article is released Sony is boosting the output of PlayStation 5 to meet a surge in demand so it's flipping the script it's actually doubling what they previously thought they would sell that's how much they're manufacturing before it was what five million now they're boosting it to 10 million by year-end not just march of 2021 like they were saying previously says logistics remain a challenge for in time for holiday deliveries so Sony Corp is roughly doubling its PlayStation 5 production to 10 million units this year as it sees prolonged effects of the kovat 19 pandemic boosting demand for gaming according to people familiar with its plans so we kind of have seen this you saw this with Nintendo with the switches going into extremely high demand you really can't get them anymore unless you buy them from scalpers for like 500 bucks and Nintendo has had to I guess up production and even that has not been able to meet the demand so Sony is looking at that and they're saying whom people are not really so scared to spend money in fact they're stuck at home in a lot of cases maybe they're gonna be more willing to buy a Playstation 5 later in the article says the electronics giant has informed assembly partners and suppliers it's radically increasing orders for its next generation console though logistics may yet pose a challenge in delivering all those machines on time for the holiday shipping season shopping season the people said asking to remain innominate anonymous and we already know this they previously aim to go 5 to 6 million Sony spokesman declined to comment Japanese business daily Nikkei earlier reported Sony's planned production boost of the game machine which is scheduled to release this fall we still don't know I don't think an official release day we don't even know the price yet there was rumors that this past Monday that there would be a pre-order going up those rumors all turned out to be completely wrong and the Amazon page that people thought had gone up right the rumor time I looked and it was in the wayback machine Internet Archive since June so really nothing new all these rumors were a hundred percent completely wrong so we don't know when we're gonna get a price however there is one speculation that Sony is probably going to be waiting until at least after Xboxes games showcase they announced which is on July 23rd which is what day is that that's next Thursday so there's rumors that Xbox is going to be releasing the price of their Xbox 1x on this date during their showcase and Sony will probably follow suit after that and it's probably going to be either the same or possibly even a lower price depending so even with a booster manufacturing Sony may still be unable to put enough units on store shelves in the coming year and holiday season due to shipping constraints the people said a large proportion of Sony's consoles are made in China and sent sent out via C around the world it takes months for shipping to travel from China to the US and Europe via ocean lines in Nintendo earlier this year had trouble refilling stock of its popular switch console for this reason I did a google search on how long it takes for a shipping cargo container to go from China the u.s. it said like 30 to 40 days sounds about right Sony had previously advised suppliers that require it would require 10 million units of the dual sense controller for the new Playstation machine by March of next year and the production and the new controllers also being increased to match the consoles output so originally they were saying 10 million controllers for 5 to 6 million consoles I assume that means they're gonna be making like 20 million controllers because a lot of times when people buy a new console you know they get to them so they can play with someone else or just have an extra says Sony began PS 5 mass production in June didn't know that and under the latest plan except expects to assemble 5 million units by the end of September and another 5 million between October and December a large portion of the latter tranche would turn into stock for 2021 due to the logistical delay so and you could try to use air cargo for faster delivery I didn't know this but as it did in 2013 around the launch of PlayStation 4 though of course airlines are running vastly reduced schedules due to Kover 19 so this is not an ideal situation in terms of logistics although sony has apparently expectations for very high demand but the manufacturing might not be able to meet it now we can speculate on what this means for price this is basically at the end of the article I'm thinking that probably it's gonna be like $500 I mean there's talk about it being $400 which would be the same as the ps4 when it launched but I don't know I see that as probably unlikely because of inflation you know that was $400 in 2013 apparently that's around $450 now and you know $450 is kind of an awkward price maybe they would do 450 for the diskless digital version 500 for the one with the disc that might make sense but I think the Xbox would probably $500 I definitely don't think it would be more than $500 I would be very hard I would be very surprised it was more than $500 and Xbox will probably be $500 no more than that certainly because we know that one of the big reasons the PlayStation 4 had a better deal had better performance in terms of sales earlier when it was released was because it was like $100 cheaper than the Xbox one and you know the Xbox one had that whole Kinect thing remember that no one really even wanted now was a reason the price was higher that was so stupid so if people just went out and bought the ps4 over a hundred bucks cheaper and it I think that led to a lot of games being ps4 exclusives and the reason why to this day I think personally my opinion is that PlayStation has better exclusives than Xbox for now so that might be another reason why there is more demand maybe for the PlayStation 5 the next box there's a lot just more people who have the PlayStation ecosystem than necessarily the Xbox potentially so that's all speculation I'm thinking $500 would be a decent price point I think it was $400 I mean it would go absolutely crazy of course they can always lower the price but I think the fact that they're expecting higher demand and they're probably gonna be paying more for components because the whole corona buyers shipping all that stuff costs are gonna be higher to produce it it's probably gonna be like $500 on launch although they'll probably try to bring the price down as quickly as possible as they start streamlining the production line all that sort of stuff so let me know down in the comments what price you would be willing to pay maximum would you be willing to pay $500 or would you have to kind of wait with the whole uncertainty with the copa 19 are you worried about more recession stuff going on let me know down in the comments what price would be like a absolute yes all by it and one that would kind of make you hesitate so we can talk about that down there so thanks so much for watching guys be sure to subscribe I've been trying to pick making new videos possibly even daily as much as daily at least most days in a week I'm usually talking about what I think is the most significant news story of the day so let's talk again the next videoyou may remember just a few months ago how there was talk about how Sony would potentially have to limit the amount of PlayStation fives they manufacture this year for a couple reasons first because of the whole corona virus affecting China and their supply lines earlier in the year and also because of the corona virus people would be wanting to save money they'd be less willing to spend it and this would just create a economic depression or recession essentially so sony was talking about very much limiting the amount of playstation fives they'd make they didn't expect to sell as many so we have this article that's from April 15 2020 and they were talking about how Sony had at the time planned to produce far fewer units of its upcoming PlayStation 5 in its first year then it had for the previous generation consoles launched and it says specifically the company had told assembly partners it would make 5 to 6 million units in the fiscal year ending March 2021 so that's not even necessarily 5 million by the end of the year and it also says when Sony released the released the PlayStation 4 in November of 2013 Jesus that long ago doesn't even feel like it it sold seven and a half million units in the first two quarters now we come to today or well yesterday is when this article is released Sony is boosting the output of PlayStation 5 to meet a surge in demand so it's flipping the script it's actually doubling what they previously thought they would sell that's how much they're manufacturing before it was what five million now they're boosting it to 10 million by year-end not just march of 2021 like they were saying previously says logistics remain a challenge for in time for holiday deliveries so Sony Corp is roughly doubling its PlayStation 5 production to 10 million units this year as it sees prolonged effects of the kovat 19 pandemic boosting demand for gaming according to people familiar with its plans so we kind of have seen this you saw this with Nintendo with the switches going into extremely high demand you really can't get them anymore unless you buy them from scalpers for like 500 bucks and Nintendo has had to I guess up production and even that has not been able to meet the demand so Sony is looking at that and they're saying whom people are not really so scared to spend money in fact they're stuck at home in a lot of cases maybe they're gonna be more willing to buy a Playstation 5 later in the article says the electronics giant has informed assembly partners and suppliers it's radically increasing orders for its next generation console though logistics may yet pose a challenge in delivering all those machines on time for the holiday shipping season shopping season the people said asking to remain innominate anonymous and we already know this they previously aim to go 5 to 6 million Sony spokesman declined to comment Japanese business daily Nikkei earlier reported Sony's planned production boost of the game machine which is scheduled to release this fall we still don't know I don't think an official release day we don't even know the price yet there was rumors that this past Monday that there would be a pre-order going up those rumors all turned out to be completely wrong and the Amazon page that people thought had gone up right the rumor time I looked and it was in the wayback machine Internet Archive since June so really nothing new all these rumors were a hundred percent completely wrong so we don't know when we're gonna get a price however there is one speculation that Sony is probably going to be waiting until at least after Xboxes games showcase they announced which is on July 23rd which is what day is that that's next Thursday so there's rumors that Xbox is going to be releasing the price of their Xbox 1x on this date during their showcase and Sony will probably follow suit after that and it's probably going to be either the same or possibly even a lower price depending so even with a booster manufacturing Sony may still be unable to put enough units on store shelves in the coming year and holiday season due to shipping constraints the people said a large proportion of Sony's consoles are made in China and sent sent out via C around the world it takes months for shipping to travel from China to the US and Europe via ocean lines in Nintendo earlier this year had trouble refilling stock of its popular switch console for this reason I did a google search on how long it takes for a shipping cargo container to go from China the u.s. it said like 30 to 40 days sounds about right Sony had previously advised suppliers that require it would require 10 million units of the dual sense controller for the new Playstation machine by March of next year and the production and the new controllers also being increased to match the consoles output so originally they were saying 10 million controllers for 5 to 6 million consoles I assume that means they're gonna be making like 20 million controllers because a lot of times when people buy a new console you know they get to them so they can play with someone else or just have an extra says Sony began PS 5 mass production in June didn't know that and under the latest plan except expects to assemble 5 million units by the end of September and another 5 million between October and December a large portion of the latter tranche would turn into stock for 2021 due to the logistical delay so and you could try to use air cargo for faster delivery I didn't know this but as it did in 2013 around the launch of PlayStation 4 though of course airlines are running vastly reduced schedules due to Kover 19 so this is not an ideal situation in terms of logistics although sony has apparently expectations for very high demand but the manufacturing might not be able to meet it now we can speculate on what this means for price this is basically at the end of the article I'm thinking that probably it's gonna be like $500 I mean there's talk about it being $400 which would be the same as the ps4 when it launched but I don't know I see that as probably unlikely because of inflation you know that was $400 in 2013 apparently that's around $450 now and you know $450 is kind of an awkward price maybe they would do 450 for the diskless digital version 500 for the one with the disc that might make sense but I think the Xbox would probably $500 I definitely don't think it would be more than $500 I would be very hard I would be very surprised it was more than $500 and Xbox will probably be $500 no more than that certainly because we know that one of the big reasons the PlayStation 4 had a better deal had better performance in terms of sales earlier when it was released was because it was like $100 cheaper than the Xbox one and you know the Xbox one had that whole Kinect thing remember that no one really even wanted now was a reason the price was higher that was so stupid so if people just went out and bought the ps4 over a hundred bucks cheaper and it I think that led to a lot of games being ps4 exclusives and the reason why to this day I think personally my opinion is that PlayStation has better exclusives than Xbox for now so that might be another reason why there is more demand maybe for the PlayStation 5 the next box there's a lot just more people who have the PlayStation ecosystem than necessarily the Xbox potentially so that's all speculation I'm thinking $500 would be a decent price point I think it was $400 I mean it would go absolutely crazy of course they can always lower the price but I think the fact that they're expecting higher demand and they're probably gonna be paying more for components because the whole corona buyers shipping all that stuff costs are gonna be higher to produce it it's probably gonna be like $500 on launch although they'll probably try to bring the price down as quickly as possible as they start streamlining the production line all that sort of stuff so let me know down in the comments what price you would be willing to pay maximum would you be willing to pay $500 or would you have to kind of wait with the whole uncertainty with the copa 19 are you worried about more recession stuff going on let me know down in the comments what price would be like a absolute yes all by it and one that would kind of make you hesitate so we can talk about that down there so thanks so much for watching guys be sure to subscribe I've been trying to pick making new videos possibly even daily as much as daily at least most days in a week I'm usually talking about what I think is the most significant news story of the day so let's talk again the next video\n"