The spread of the virus has not only caused problems in the production of the products, but it is also influencing events and fairs.
The coronavirus crisis directly influences technology companies. The disease, which has spread from China, adds new cases in Europe and has also landed in the United States. Given this situation, video game companies have opted for prudence and some have decided to cancel their presence in specialized fairs. However, the panorama that opens is of certain uncertainty, since the virus affects the production of hardware and accessories.
The case of Nintendo Switch in Japan. What about PS5 and Xbox Series X?
Like other technology manufacturers, the Kyoto company manufactures its devices in China. In the case of Nintendo, the production takes place in that eastern country, although the process also takes place in Vietnam. It was the company's own president, Shuntaro Furukawa, who recognized that the coronavirus crisis was altering the plans of the Japanese. As a result, the distribution of Nintendo Switch in Japan has suffered delays, as has Ring Fit, an accessory that is manufactured in China. To date, the shortage has only had consequences in Japan.
Not surprisingly, one of the victims is Animal Crossing: New Horizons, whose new thematic console will be available on schedule, but only in Europe and the United States. At least, this will be the case during the short or medium term, since neither Nintendo nor any company in the sector has publicly reflected on what will happen if the crisis worsens.
Nintendo Switch from Animal Crossing.
Xbox Series X and PlayStation 4, the new generation systems of Microsoft and Sony, respectively, have set their release date by the end of the year 2020. Is it possible for the coronavirus to disrupt dates? Of course, none of the companies have indicated any mention in that direction. In fact, Redmond's console showed new details recently. Even so, the Jefferies Group financial advisory warns that with the closure of the factories, this situation could lead to an unwanted direction:
"The video game sector is currently manufacturing, or starting to manufacture, a generation of products for several years ahead of the 2020 holiday season," said Jefferies Group. “If the closures (of the companies) continue for a month or more, the programming of those games will be delayed. The new consoles could, in the same way, suffer supply problems due to this prolonged interruption, (launching) thus beyond what was planned in autumn 2020 ”, they point out. And according to the data handled by Jefferies Group, virtually all hardware is manufactured in China.
Xbox Series X
The fairs, very affected
The coronavirus is taking over the health of fairs specializing in video games and technology, to the point that many of the great publishers have decided to cancel their plans and not go. To date, none has eluded E3 2020 for this reason, but Boston's PAX EAST and GDC 2020 are suffering numerous casualties. Sony Interactive Entertainment, which ruled out going to E3 in Los Angeles for other reasons, decided to get off the PAX ship, and that there was going to be a playable demo of The Last of Us Part 2. The words of the mayor of the city asking that reconsidered the decision has not had the desired effect, as the company has not rectified. Similarly, CD Projekt RED (The Witcher, Cyberpunk 2077), Square Enix and Capcom also chose to say goodbye to the fair or limit their presence, as appropriate.
The Game Developers Conference had planned a presentation by Hideo Kojima, which will finally not be materialized, since Kojima Productions has announced that it will not travel because of the coronavirus. Although it is not a Death Stranding, Electronic Arts has already confirmed that it will not be seen by San Francisco. "Having closely followed the global situation with the coronavirus and the recent escalation of chaos in new regions, we have decided to take measures to protect the well-being of our employees, including their restriction on non-essential travel."
A past edition of the GDC. Photo: GDC
While WHO has warned that COVID-19 is spreading and that the possibility of a pandemic is real, the mortality rate is lower than that of a common flu. Thus, the data confirm that between 2% and 4% of those infected in Wuhan (China) did not survive the disease, while abroad the index collapses to 0.7%.
The video game industry looks at the development of events with concern, but only time will tell what the real consequences of this crisis are. In Microsoft, in fact, they have already advanced that it is very possible that the objectives of the third quarter of the fiscal year are not met due to the coronavirus. We will have to wait and value.
