PlayStation 5 Production Output Will Reportedly Be Limited in its First Year of Launch

A new report from Bloomberg indicates that the PlayStation 5 production output will be more limited in its first year of launch compared to the PS4.

According to people familiar with the matter, Sony is limiting its initial PS5 production to about 5 to 6 million units in the fiscal year ending March 2021. In comparison, the PlayStation 4 sold 7.5 million units in its first two quarters.

As previously reported in February, the manufacturing cost of the PS5 console was around the $450 USD per unit range. The PS4 was estimated to cost around $381 to manufacture, so we can expect a loftier price tag for the PS5. According to Damian Thong, an analyst at Macquarie Captial, the PS5 and Xbox Series X may end up selling at $450, even if it means losing money at the price. While Sony has struggled with setting the price for the PS5, the production volume of the console could also still change depending on the situation with COVID-19.

Sony has asked employees to work from home to prevent further spread of the virus, but its board hasn’t been able to meet to approve of business plans for the current fiscal year, which includes plans for the PS5. The meeting was expected to take place in March. Furthermore, the company’s next financial report may also get pushed back from its April 30th release due to the pandemic.

Additionally, the sources told Bloomberg that the virus has already upended Sony’s promotional plans. The most recent case was the reveal of its DualSense PS5 controller, which was done in a hurried fashion according to the people in know. Sony may forgo hosting a public press conference for the release date and price unveiling of the PlayStation 5. The people also added that Sony remains unlikely to delay the launch of the PS5 from the critical year-end season, so long as Microsoft doesn’t delay the next-generation Xbox.

Lastly, people in the company’s supply chain said that suppliers have already started delivering components to PS5 assemblers. The assemblers are scheduled begin mass-production of the PS5 by June 2020, and Sony Interactive Entertainment president Jim Ryan has stressed that the console should launch simultaneously worldwide.