We Need to Talk About the Gaming Industry’s Shipping Delay Problem
When the Playstation 5 launched in 2020, it was supposed to be the next big seller for Sony. It was already facing some stiff competition by releasing just two days after the Xbox Series X and Series S, but consumers found themselves facing different hurdles — short supplies, scalpers, and the sheer size of the console.
For a massive company like Sony, this sort of shipping delay was previously unheard of. What caused these shipping delays and what does that mean for the future of the gaming industry as a whole?
Pre-Order Delays Because — The Console is Too Big?
The Playstation 5 launch hit a massive variety of hurdles, but one that they didn’t expect was delivery problems because of the size of the console. Sony claimed that in the UK, delivery services weren’t able to handle the size of the console, leading to pre order delivery delays.
While a lack of available supply at pre-order was also a challenge, those that did manage to secure their purchases expected to be able to get their hands on a new PS5 at launch.
Sony’s choice to blame the size of the console was the source of dozens of viral memes, but it is indicative of larger problems that are becoming endemic in the gaming industry.
COVID-19 and Supply Chain Changes
The COVID-19 pandemic changed the way we look at a lot of things, including shopping. With lockdowns in place and people staying home to protect themselves, online shopping increased exponentially and left sellers struggling to keep up with demand. It also caused many supply chain issues when manufacturers found themselves unable to get their hands on even the most basic components.
Upwards of 75% of surveyed companies reported some sort of pandemic related supply chain disruption during 2020, and many of these haven’t managed to recover yet. Sony claimed that the pandemic only affected it’s promotional plans for the new platform, but they still made the decision to limit the number of PS5s they released at any given time. This generated an entirely new problem.
Combating Scalpers and Resellers
Getting your hands on a PS5 became an enormous challenge toward the end of 2020 and the beginning of 2021 — and the lack of availability wasn’t due to Sony’s limited releases.
Any time a batch of consoles became available, it vanished almost as fast, only to reappear on resale sites like eBay for two to three times their retail price. With the console already costing a minimum of $399, scalpers were making a mint and gamers were shelling out a pretty penny for next gen graphics and gameplay.
COVID, and the fact that shoppers have turned to online retailers instead of brick and mortar stores made this even worse. While scalpers could walk into a Best Buy or Walmart and buy up a PS5, these stores were limiting sales to one per person.
Online purchases — at least in the beginning — didn’t have the same restrictions. Even digital purchases are delayed now in an attempt to prevent scalpers and resellers
What Does the Future of the Gaming Industry Look Like?
The shift toward online purchases may have started during the COVID-19 pandemic, but for gamers who spend more online than in physical stores, this is going to continue to grow.
The future of gaming physical gaming — online console purchases, games, etc — will depend on the developers and manufacturers and their abilities to combat both supply chain challenges and scalpers intent on making off with everything they can get their hands on.