COVIDelay –
Coming console launches could be at risk if virus continues to impact Asia.
The delay follows warnings from other gaming hardware manufacturers that availability of existing products might be impacted by the virus’ spread. Nintendo said last month that it expected shortages of Switch hardware and peripherals in the Japanese market due to disruptions to the Chinese supply chain (this despite the company Moving some of its hardware production to Vietnam last year). And Facebook-owned Oculus warned to expect further shortages of the Quest VR headset as the company sees “additional impact to our hardware production due to the coronavirus.”
But the TurboGrafx – Mini is the first major piece of gaming hardware to see its initial release delayed by the virus’ impact. And the move highlights fears in some corners of the industry that Microsoft and Sony might be forced to delay their own planned console launches later this year.
“The video game sector is currently manufacturing, or beginning to, a once-in-several-years’ product generation change for the 2020 holiday season, “Jefferies Group said in an analyst note published last month (as reported by Business Insider
Other industry watchers have pointed to apparent problems in Apple’s Chinese supply chain
”[Apple] doesn ‘t really have a realistic manufacturing alternative because of the complexity of assembly (many components, very high specs, relatively high cost), “Pachter TechRadar last month
. “In contrast, Xbox and PlayStation don’t have to be produced in China, but obviously that is the lowest cost country.”
For Microsoft’s and Sony’s console launches to face serious trouble, the impact of the coronavirus on production facilities would have to last through June, Pachter said. Even then, the console makers would likely have ample time to “quietly arrange for production in Taiwan and Vietnam (at a cost of maybe $ 5 – per unit more at most ) just to be safe, “he said.
Microsoft
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