Support NeoGAF

[EliteSmurf]

Link:

Bloomberg - Are you a robot?

Sony Corp. is roughly doubling its PlayStation 5 production to 10 million units this year as it sees the prolonged effects of the Covid-19 pandemic boosting demand for gaming, according to people familiar with its plans.

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 to delivering all those machines on time for the holiday shopping season, the people said, asking to remain anonymous. Sony had previously aimed to produce 5 million to 6 million PS5 units by the end of March 2021, Bloomberg News has reported.

A 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.

Concerns about a second wave of coronavirus infections may keep more people at home for longer, as governments around the world closely monitor efforts to reopen their economies. Sony’s revised expectation is that this ongoing situation will stir additional demand for the PlayStation 5 console, whose official debut captivated the gaming community.

Even with a boost to manufacturing, Sony may still be unable to put enough units on store shelves in the coming year-end holiday season due to shipping constraints, the people said. A large proportion of Sony’s consoles are made in China and sent out via sea around the world. It takes months for shipments to travel from China to the U.S. and Europe via ocean lines, and Nintendo Co. earlier this year had trouble refilling stock of its popular Switch console for this reason.

Sony had previously advised suppliers that it would require 10 million units of the DualSense controller for the new PlayStation machine by March next year. Production of the new controller is also being increased to match the console’s new output plan.

Sony began PS5 mass production in June and, under the latest plan, 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. Sony could try to use air cargo for faster delivery, as it did in 2013 around the launch of the PlayStation 4, though airlines are running vastly reduced schedules due to Covid-19 and Sony’s ability to reserve flights would be limited.

EDIT: https://asia.nikkei.com/Business/Technology/Facebook-and-Sony-ramp-up-output-of-gaming-devices
Claims 9 million

"Meanwhile Sony, the world's No. 2 video game console maker after Nintendo by shipments, has also raised production orders for its upcoming PlayStation 5 to around 9 million units, from the roughly 6 million units it had planned in spring, sources familiar with the matter said. The PlayStation 5 is the first completely new generation of the console in seven years, after the Japanese company launched the PlayStation 4 in 2013 and an upgrade in 2016."

I apologise if I messed the post up I ain't good at this kind of stuff.

 

[kretos]

 

[GHG]

Trolls keep tht same energy.

PS Quintuple is coming for yo ass and there's nothing you can do about it.

 

[-Plasma Reus-]

No discernable difference between this gen and next gen.

No real system sellers like GTA releasing soon.

I won't be buying a next gen console for years.

 

[The Fartist]

No discernable difference between this gen and next gen.

No real system sellers like GTA releasing soon.

I won't be buying a next gen console for years.

 

[DynamiteCop!]

I wouldn't buy one until they offered it in black anyway, who wants an inverted oreo the size of laserdisc player under their entertainment system, assuming it even fits.

 

[GHG]

No discernable difference between this gen and next gen.

No real system sellers like GTA releasing soon.

I won't be buying a next gen console for years.

But GTA V.

You should play it again.

And again.

And again.

I wouldn't buy one until they offered it in black anyway, who wants an inverted oreo the size of laserdisc player under their entertainment system, assuming it even fits.

I'll just be putting mine in my mini fridge.

 

[The Fartist]

But GTA V.

You should play it again.

And again.

And again.



I'll just be putting mine in my mini fridge.

Like, actually inside of it? Or on top, you mean?

 

[GHG]

Like, actually inside of it? Or on top, you mean?

Inside. Always inside baby.

Packing too much heat, if you know what I mean.

 

[turtlepowa]

If Sony is clever they produce 90% digital editions.

 

[The Fartist]

Inside. Always inside baby.

Packing too much heat, if you know what I mean.

Ok, well, good luck with that. Just make sure you pull it out every now and then, you don't want an accident to happen.

 

[FranXico]

But GTA V.

You should buy it again.

And again.

And again.

FTFY

 

[HerjansEagleFeeder]

How do you measure a "surge in demand" right now exactly?

 

[namekuseijin]

early adopters perhaps. But quarentine, economic struggles and election outcomes may prevent that...

and for me, nothing exciting so far. Consoles always have issues in the first year as well...

 

[Qudrat Rabbi]

Good. Now I just need that release date and the price. I don’t care if it’s more expensive. I know the games are gonna kick ass.

 

[Gamerguy84]

Good maybe I can get one.

 

[hemo memo]

How do you measure a "surge in demand" right now exactly?

Ads interactions, PS5 sign ups etc...

I still think 10m is low.

 

[TheGrat1]

If Sony is clever they produce 90% digital editions.

I would be pleased to see the market largely reject that sku out of hand. It would hopefully scare them into making sure the PS6/XboxNext also have a physical media drive. These companies should know that people like options.

 

[Hoho for breakfast]

Thats more by a couple million than the PS4 launch. They probably need to go $400 on the digital and no more than $500 on the disc version then to get those kind of sales.

Anyone else remember when PS4 launched, you could put a quantity of 9,999 in your amazon cart and then it'd tell you how many were available if it was less than that? I used to watch that number tick down and the rate they sold at was nuts for quite awhile.

The PS5/Xbox launch could be the biggest launches of all time. We'll see I guess but I think its going to happen.

 

[Oddvintagechap]

How do you measure a "surge in demand" right now exactly?

Maybe when the Amazon pages went up they had way too many people waiting to preorder one. They had to abort mission.

Im going to drop 1000$ day one. One digtial PS5, one bluray PS5 and one or two games.

 

[Deleted member 775630]

How do you measure a "surge in demand" right now exactly?

Instagram likes

 

[Knitted Knight]

How do you measure a "surge in demand" right now exactly?

Youtube views, twitter views, PS blog views, talk on social media, gaming media talk, the competition's offering and buzz (muted), engagement on PS4, support for first party titles etc etc... Sony must also be confident about their marketing going forward after Ghost has its first week of sales on the books. It's gonna be all about next-gen after that....they been holding back. The train hasn't even departed yet.

We've yet to have a deep gameplay dive on the Demon Souls Remake, Horizon II Forbidden West, a deep gameplay dive on Spider-man Miles Morales, Ratchet, GT7 etc etc... plus the rumoured big gun surprises for August. We also haven't seen the O.S walkthrough, features talk, the console in action etc etc.

Be ready:

 

[Shambala]

$399 bomb about to drop

 

[Tulipanzo]

How do you measure a "surge in demand" right now exactly?

The itch here is we don't know when or for how long this increase in production was planned.

Demand is however obviously going to be high:
- Great performance this generation
- Very strong first year line-up
- Record-breaking views on the PS5 Reveal
- High social media engagement on everything PS5 related
I'm sure their internal market research reflects this.

 

[DeltaPolarBear]

$399 bomb about to drop

I still think it is 50% likely. That Sony had been pretending PS5 is going to be expensive, just to surprise us at reveal.

 

[UltimaKilo]

How do you measure a "surge in demand" right now exactly?

Search, polling, digital engagements, retail inquiries, modeling, etc. There’s a lot of ways.

 

[Explosive Zombie]

Is that enough? How fast did PS4 hit 10 million?

 

[ZehDon]

They sold around a 1 Million on launch day with the PS4, and stock was limited for a while. If they're aiming for 10x the output during a global pandemic, they're being very optimistic indeed.

 

[sobaka770]

Day 1 baby. Get those preorders going!

 

[HerjansEagleFeeder]

Search, polling, digital engagements, retail inquiries, modeling, etc. There’s a lot of ways.

It'd be legitimately great if Sony was able to meet demand better this time around. How many PS4 were ready in 2013?

 

[Vroadstar]

Another dominant console in the making in 3..2..

 

[llien]

"...the world's No. 2 video game console maker after Nintendo... by shipments ..."

Oh, boy.

If they're aiming for 10x the output during a global pandemic, they're being very optimistic indeed.

People game more, not less, due to pandemic.

 

[The_Mike]

On a global perspective, that really ain't a lot.

I expect them to be sold out very quick. Maybe even before release because of pre orders.

People saying there's literally nothing to play on them at release - same thing was the case with this gen, and look how that turned out.

People were praising some mediocre indie game because there wasn't really any big titles to play lol.

 

[Explosive Zombie]

On a global perspective, that really ain't a lot.

I expect them to be sold out very quick. Maybe even before release because of pre orders.

People saying there's literally nothing to play on them at release - same thing was the case with this gen, and look how that turned out.

People were praising some mediocre indie game because there wasn't really any big titles to play lol.

Hey, speak for yourself, Killzone: ShadowFall is a glorious game that's underrated!

 

[ZehDon]

People game more, not less, due to pandemic.

Sony is aiming to make 10 Million PS5s - not sell. People may game more during a pandemic - factories, customs, shipping, logistics, and warehouse workers work less during a pandemic. Aiming for a 10 fold increase over the PS4 - where there was no pandemic - is very optimistic, indeed.

 

[Explosive Zombie]

Sony is aiming to make 10 Million PS5s - not sell. People may game more during a pandemic - factories, customs, shipping, logistics, and warehouse workers work less during a pandemic. Aiming for a 10 fold increase over the PS4 - where there was no pandemic - is very optimistic, indeed.

PS4 sold an average of 20 million units per year so I think they're making the wise decision here.

 

[I Love Rock 'n' Roll]

"...the world's No. 2 video game console maker after Nintendo... by shipments ..."

Oh, boy.



People game more, not less, due to pandemic.

More than 100 million hardware sold is less than 50. What level of trolling is that in DBZ?

 

[nightmare-slain]

eh, i'll pick one up in 2023 when we get a PS5 Slim/Pro.

1. i need good exclusives. so far they only have 2 that interest me: Horizon + Demons Souls
2. it looks ugly as hell. hope the slim/pro isn't as ridiculous looking
3. it's the weaker console. i want something that will actually make use of a 4K TV.

 

[UltimaKilo]

It'd be legitimately great if Sony was able to meet demand better this time around. How many PS4 were ready in 2013?

Seems to be a bit more than PS4 launch window. Still expect it to be hard to find through the holidays, much like PS4’s launch.

There’s going to be big issues with logistics this year, so we’ll see if any of those targets are hit.

Sony is aiming to make 10 Million PS5s - not sell. People may game more during a pandemic - factories, customs, shipping, logistics, and warehouse workers work less during a pandemic. Aiming for a 10 fold increase over the PS4 - where there was no pandemic - is very optimistic, indeed.

It would be a feat of epic proportions if they can actually achieve that output, with great quality assurance, in the middle of a pandemic.

 

[ZehDon]

PS4 sold an average of 20 million units per year so I think they're making the wise decision here.

Making 50% of your expected annual stock ready at launch is the opposite of a wise decision. The front loaded expenditure makes zero business sense. It took the PS4 close to 10 months to sell its first 10 million consoles. They could've sold more at launch - sure - but 10 times as much? Please. Presuming a Holiday 2020 release, Sony needs around 2 million units for launch, and another 2 million for the rest of the year. Add an extra six million PS5s? They'll be sitting on shelves for months...

 

[Explosive Zombie]

Making 50% of your expected annual stock ready at launch is the opposite of a wise decision. The front loaded expenditure makes zero business sense. It took the PS4 close to 10 months to sell its first 10 million consoles. They could've sold more at launch - sure - but 10 times as much? Please. Presuming a Holiday 2020 release, Sony needs around 2 million units for launch, and another 2 million for the rest of the year. Add an extra six million PS5s? They'll be sitting on shelves for months...

You're ignoring the momentum they now have and the brand loyalty, PS4 was big at launch but it wasn't like Xbox One was a slouch, though E3 seriously shifted the paradigm they gained momentum over Microsoft as the generation went on, taking 10 months to sell 10 million kinda makes my point more firm doesn't it? The PS4 sold more and more as time went on, it had to statistically because in 5 years and 7 months it surpassed 100 million. We also know, like the Switch at launch, the first so many months numbers were cut off by a choked supply which is clearly what they want to avoid here. You gotta keep in mind, too this will be THE Christmas gift people go for, not to mention black friday will be monstrous so selling a lot in a short time is very feasible but if they make too many how does it hurt them? The consoles WILL sell eventually, all they would hurt is the second-hand market, someone like me can't sell a PS5 for double the price on eBay (Yes, I did this with my launch PS4 and got another a few months later).

 

[ZehDon]

You're ignoring the momentum they now have and the brand loyalty, PS4 was big at launch but it wasn't like Xbox One was a slouch, though E3 seriously shifted the paradigm they gained momentum over Microsoft as the generation went on, taking 10 months to sell 10 million kinda makes my point more firm doesn't it? The PS4 sold more and more as time went on, it had to statistically because in 5 years and 7 months it surpassed 100 million. We also know, like the Switch at launch, the first so many months numbers were cut off by a choked supply which is clearly what they want to avoid here. You gotta keep in mind, too this will be THE Christmas gift people go for, not to mention black friday will be monstrous so selling a lot in a short time is very feasible but if they make too many how does it hurt them? The consoles WILL sell eventually, all they would hurt is the second-hand market, someone like me can't sell a PS5 for double the price on eBay (Yes, I did this with my launch PS4 and got another a few months later).

Nothing you've written here makes any sense.

Firstly, you're ignoring that this is the PlayStation 4. We've been here before, three times in fact - and this launch is painfully similar to the PS4, only the PS4 had the benefit of not being manufactured during a global pandemic and economic recession not seen since the 1910s.
Secondly, Sony have had brilliant brand momentum for each of their console launches. For example, the PS2 outsold the PS4. Do you think Sony needed 10 Million PS3s at launch due to momentum and brand loyalty generated by the highest selling console of all time? Of course not.
Thirdly, the increase in momentum can be solely attributed to: cheaper console prices (single biggest factor), more console availability, social sell in (friends buy what their friends have), and simply more games that people want to play. The PS5 will have literally none of these for the first couple of years - like every console that has ever launched.
Lastly, PS5 may be "THE Christmas gift", but the Playstation 4 was "THE Christmas gift". It sold 1 million on launch day, and 10 million in ten months. PS3 was "THE Christmas gift". PS1 was "THE Christmas Gift". See the pattern?

As for the logic that the consoles will "sell eventually", I've very glad you don't manage Sony's logistics. Console manufacturing expenditure can come down quickly - but it only helps you for consoles you haven't already built. Next, storage prices are pretty set in stone. If they have 10 Million consoles by December 2020, they'll need to house a minimum of 6 Million of those for months on end, because retailers sure as shit aren't holding that much dead stock while they move the units. Sony's throwing all that money away because... ?

 

[bitbydeath]

Great to hear. PS4 was sold out for around 6 months after launch so hopefully it won’t be so hard to pickup a PS5.

 

[hemo memo]

Making 50% of your expected annual stock ready at launch is the opposite of a wise decision. The front loaded expenditure makes zero business sense. It took the PS4 close to 10 months to sell its first 10 million consoles. They could've sold more at launch - sure - but 10 times as much? Please. Presuming a Holiday 2020 release, Sony needs around 2 million units for launch, and another 2 million for the rest of the year. Add an extra six million PS5s? They'll be sitting on shelves for months...

The crazy thing is we will have shortage on launch. You are underestimating the demand in the Covid19 age.

 

[icerock]

Is that enough? How fast did PS4 hit 10 million?

It is a LOT. The engagement and interest in PS5 must be off the charts. It took them until June 2014 to ship 10m units to retail, 4.5m by end of 2013. The number for PS5 production is aimed for current year, logistics are still there to get it in hands of retailers but the actual number is far beyond what they had ready for PS4 launch. More context



Makes me optimistic about hitting them $399 mark with digital SKU. Disc I expect to sell at $100 premium.

 

[Explosive Zombie]

Nothing you've written here makes any sense.

Firstly, you're ignoring that this is the PlayStation 4. We've been here before, three times in fact - and this launch is painfully similar to the PS4, only the PS4 had the benefit of not being manufactured during a global pandemic and economic recession not seen since the 1910s.
Secondly, Sony have had brilliant brand momentum for each of their console launches. For example, the PS2 outsold the PS4. Do you think Sony needed 10 Million PS3s at launch due to momentum and brand loyalty generated by the highest selling console of all time? Of course not.
Thirdly, the increase in momentum can be solely attributed to: cheaper console prices (single biggest factor), more console availability, social sell in (friends buy what their friends have), and simply more games that people want to play. The PS5 will have literally none of these for the first couple of years - like every console that has ever launched.
Lastly, PS5 may be "THE Christmas gift", but the Playstation 4 was "THE Christmas gift". It sold 1 million on launch day, and 10 million in ten months. PS3 was "THE Christmas gift". PS1 was "THE Christmas Gift". See the pattern?

As for the logic that the consoles will "sell eventually", I've very glad you don't manage Sony's logistics. Console manufacturing expenditure can come down quickly - but it only helps you for consoles you haven't already built. Next, storage prices are pretty set in stone. If they have 10 Million consoles by December 2020, they'll need to house a minimum of 6 Million of those for months on end, because retailers sure as shit aren't holding that much dead stock while they move the units. Sony's throwing all that money away because... ?

"The US unemployment rate fell to 11.1% as the economy added a record 4.8 million jobs in June, the Bureau of Labor Statistics reported on Thursday."



PS3 came late and expensive. Despite that it still sold close to 4 million units in its first fiscal year. You say PS2 outsold PS4, but PS2 took a few extra months to hit 100 million than PS4 did, so through the same time period PS4 is actually faster selling. BTW it's already been stated producing 10 million does not equate to 10 million actually in retailer hands by December 2020.

 

[TLZ]

I'll just be putting mine in my mini fridge.

You're putting your penis in the Xbox Series X?

 

[hemo memo]

Nothing you've written here makes any sense.

Firstly, you're ignoring that this is the PlayStation 4. We've been here before, three times in fact - and this launch is painfully similar to the PS4, only the PS4 had the benefit of not being manufactured during a global pandemic and economic recession not seen since the 1910s.
Secondly, Sony have had brilliant brand momentum for each of their console launches. For example, the PS2 outsold the PS4. Do you think Sony needed 10 Million PS3s at launch due to momentum and brand loyalty generated by the highest selling console of all time? Of course not.
Thirdly, the increase in momentum can be solely attributed to: cheaper console prices (single biggest factor), more console availability, social sell in (friends buy what their friends have), and simply more games that people want to play. The PS5 will have literally none of these for the first couple of years - like every console that has ever launched.
Lastly, PS5 may be "THE Christmas gift", but the Playstation 4 was "THE Christmas gift". It sold 1 million on launch day, and 10 million in ten months. PS3 was "THE Christmas gift". PS1 was "THE Christmas Gift". See the pattern?

As for the logic that the consoles will "sell eventually", I've very glad you don't manage Sony's logistics. Console manufacturing expenditure can come down quickly - but it only helps you for consoles you haven't already built. Next, storage prices are pretty set in stone. If they have 10 Million consoles by December 2020, they'll need to house a minimum of 6 Million of those for months on end, because retailers sure as shit aren't holding that much dead stock while they move the units. Sony's throwing all that money away because... ?

Let’s talk after when we have multiple threads on here from people complaining they couldn't get a PS5 on launch.

 

[ZehDon]

The crazy thing is we will have shortage on launch. You are underestimating the demand in the Covid19 age.

No, you're expecting a 1000% increase in demand when no generation has ever seen an increase in that ball park.

"The US unemployment rate fell to 11.1% as the economy added a record 4.8 million jobs in June, the Bureau of Labor Statistics reported on Thursday."

The US is not the world. The "unemployment rate" in the US is a famously unreliable metric for spending power, because an employee earning the minimum wage is counted as employed, when they can barely pay rent let alone purchase an expensive console on launch day. Nice try, though. And you're ignoring the global pandemic.

PS3 came late and expensive. Despite that it still sold close to 4 million units in its first fiscal year. You say PS2 outsold PS4, but PS2 took a few extra months to hit 100 million than PS4 did, so through the same time period PS4 is actually faster selling. BTW it's already been stated producing 10 million does not equate to 10 million actually in retailer hands by December 2020.

... everything you've written lends more weight to my points instead of yours. You might want to read and understand what people write instead of just writing a response and hoping it works out. Anyway, it's clear you don't know anything about this topic, so I'll leave you to it. Have fun.

Let’s talk after when we have multiple threads on here from people complaining they couldn't get a PS5 on launch.

Noted.

 

[Explosive Zombie]

Okay... let's ignore everything you just said and focus on this idea of 1000% increase in demand, because it might help us shine some light on how good you are with numbers. Like... let's be clear... you've turned my argument into the idea that PS5 will sell 10 million units in a single day, correct? Because I've never said that.