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Michael Pachter: It’s Too Early To Panic About The Coronavirus

Wedbush Securities’ popular analyst thinks Sony and Microsoft don’t have to panic just yet because of the coronavirus that originates from Wuhan.

„If [the] Coronavirus lasts through June, it will be a problem. It’s possible that it lasts that long, but the stock market tells you that is not the case. If it were, the market would be tanking because of the long-term disruption of the supply chain,” Pachter told TechRadar. He responded to what Jefferies Group, a financial company predicted (we wrote about it the other day) – they believe the virus might delay the launch of both the PlayStation 5 and the Xbox Series X.

He also added that Apple ran into issues because they had no alternatives ready, but the two console manufacturers can still think about what to do: „I could see Apple panicking if Coronavirus is still an issue in a month, but I think Sony and Microsoft will quietly arrange for production in Taiwan and Vietnam (at a cost of maybe $5-10 per unit more at most) just to be safe,” Pachter said. So the consoles might be slightly more expensive if the manufacturing is moved to other countries within Southeast Asia. Nintendo has already shifted some of the production of the Nintendo Switch out of China (but they already said the virus infection is going to cause some issues in stocking the console), but that was because of the trade war between China and the United States, which seems to be put on hold for now.

So we have no reason to worry yet. If the PlayStation 5 and the Xbox Series X both launch in November, then we still have nine months, and since nor Sony, neither Microsoft revealed the exact release date, they can still shift things around behind the scenes.

Source: PSL

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