Game On For Sony

Sony will make 10 million Playstation 5 units this year, doubling the initial projections for its new console due for release this fall. The boost in production comes as a result of the added demand for the next-generation console during the COVID-19 pandemic and an overall rise of interest in video games.

The company had originally planned to produce between 5 million and 6 million consoles by the end of March 2021. Even with the expected increase, there are still fears Sony won’t fill the demand this holiday season, especially if the coronavirus keeps people at home into the winter.

U.S. consumer spending on video games jumped 9% to $10.9 billion in the first quarter in 2020 setting a new quarterly record, according to NPD Group. There were $1.4 billion in hardware sales globally year-to-date through May, up 34% compared to last year.

Sony is looking to avoid the situation Nintendo suffered this spring when shipments of its Switch console were delayed from China, which led to it being sold out globally. Nintendo’s stock price hit a 12-year high in June thanks to that demand, and the company said it expects to sell 19 million consoles during its 2021 fiscal year.

There’s no official release date or price for Playstation 5, although analysts expect it to be around $499. Its “holiday release” also lines up with Microsoft’s release of its new Xbox Series X console.