Microsoft says it can still manufacture the Xbox Series X despite coronavirus concerns

Earlier this month, when Konami announced it was delaying the release of the TurboGrafx-16 Mini, we wondered if similar supply issues caused by coronavirus-related quarantines could affect the planned launch of Sony and Microsoft consoles towards the end. of the year.

In an interview with CNBC yesterday, however, Microsoft CEO Satya Nadella said the supply chain for its next device in 2020, including the Xbox Series X, looks relatively robust.

While Nadella won't immediately confirm that products like the Series X, Surface Neo and Surface Duo tablets will launch as planned in the fourth quarter ("We'll have to check again"), he said "supply networks are coming back. , that's not our real problem".

Microsoft cited its recent production of work-from-home kits required by remote workers as evidence that "we feel good about where we are in terms of manufacturing."

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Nadella warned that what could impact product launches the most is "what happens in the US, Europe and other developed markets, on the demand side going forward."

In other words, while Microsoft may be able to create enough new hardware in time for this holiday season, it remains to be seen whether virus-hit economies will be ready to buy that hardware in sufficient quantities by then.

For now, Nadella says Microsoft will continue to finalize its next line of products and will look at "the situation in terms of demand and security in terms of people."

Last month, Wedbush Morgan analyst Michael Pachter said that the problems caused by the coronavirus should extend until June to become an obstacle to the launch of the Xbox Series X or PlayStation 5.

And even if the outbreak was still severe in China at the time, countries like Taiwan or Vietnam can still provide production at a slightly higher cost, he said.

All this leads us to believe that unlike the rest of the market, it seems that Microsoft seems to be pretty sure about the launch of its next console and devices in 2020.