Financial forecasts and the coronavirus pandemic are impacting all parts of Sony's business, but the PlayStation 5 console will be released as scheduled. Picture: AP Photo/Eugene Hoshiko
Financial forecasts and the coronavirus pandemic are impacting all parts of Sony's business, but the PlayStation 5 console will be released as scheduled. Picture: AP Photo/Eugene Hoshiko

Sony plans to launch PS5 on time despite coronavirus crisis

By Makiko Yamazaki and Field Level Media Time of article published May 14, 2020

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Financial forecasts and the coronavirus pandemic are impacting all parts of Sony's business, but the PlayStation 5 console will be released as scheduled.

Sony said Wednesday as part of an earnings report that there is no reason to delay the public release of its latest gaming console as it navigates challenges with the supply chain and manages production challenges.

"Development is progressing with the launch of the console scheduled for the 2020 holiday season," Sony said Wednesday.

Nintendo warned Switch users that production and release of games could be delayed.

XBox Series X is also due for a 2020 release. Microsoft's Phil Spencer said in April that the company hadn't considered a "plan B" and would release the console if all elements are deemed ready.

Analysts have projected the price of PS5 will be in the range of $470 to $499 due to the "massive generational leap" incorporated in the hardware and software.

A premium model could sell for $650.

 Sony Corp <6758.T> expects operating profit to drop at least 30% this financial year to its lowest in four years as the company anticipates a hit to demand for its TVs, cameras and smartphone image sensors from the coronavirus outbreak.

Sony has halted production at some plants and experienced supply-chain disruptions as governments around the world imposed lengthy restrictions on movement and business activity to contain the virus.

Chief Financial Officer Hiroki Totoki said the consumer electronics business such as TVs "has been hardest hit right now, but the impact will expand to other businesses as well."

However, one bright spot for Sony was its gaming business, which reported a narrower-than-expected profit decline for the year that ended in March. The business had a positive impact of 2.8 billion yen from the coronavirus outbreak, as consumers locked down at home looked for entertainment and downloaded more gaming software.

Sony reiterated the year-end timing for the PS5 launch, denying media speculation that the coronavirus would impact production and cause a major delay. The company has nevertheless been forced to announce delays to major games titles such as The Last Of Us Part II.

--Field Level Media and Reuters

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