Playstation 5 is one amongst many that have issues in their production. Now of course this is not news as it is a widely known fact. PS5 and the newest graphics crads have a high demand but a low supply. Here’s why the situation is this and how it got here.
You would think that a brand such as Playstation would take extra measures to ensure customer satisfaction. In the console market there really is only 2 products that compete with each other but both has the same problem.
There’s a high chance you have seen some Youtube clickbaits that “Why are we running out of computers” and many similar ones. As we said, those are merely clickbaits and not how the things are in reality. While yes, we have a lack of computer chipsets which power all of our devices but we are not running out of them. It’s really quite the opposite.
When it comes to chipsets, it’s really all about logistics at this point. We are not running out of materials to build them or running out of chipsets at all. Almost every business follows a supply and demand chain. This is a huge factor in this scenario.
Playstation 5 – Supply and Demand
When it comes to supply and demand, you really couldn’t be more complex than Playstation 5 or consoles in general. Sony merely designs and builds the console from existing parts. They do not make the parts for the console itself. This is why they order a certain amount of those parts depending on the demand and a little extra on top of the demand.
Then those who manufacture the components for the console has to order parts for the components to fulfill that order. this goes on and on for a while so you might see now why the case is this at the moment.
Surely Sony knew that there would be many pre-orders for their new console but they couldn’t predict the virus that went, well viral you could say. So the fault lies in the complex system that is our world logistics nowadays. It’s not made for fast epidemics and thus it has a really slow recovery rate.
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