Video Game Consoles Driving Component Demand, Pre-Orders Higher Than ExpectedBy: Sean Patterson - July 30, 2013
The latest generation of video game consoles is set to launch this fall. Microsoft will be releasing its new Xbox One console and Sony will be releasing its new PlayStation 4 console. Though the release dates for the consoles have not been announced, it is likely that they will land within weeks of each other. Gamers who have just been through a long, 8-year console generation are anxious for the new devices, and both are expected to sell out at launch.
With demand for these consoles so high, it is now clear that the devices are driving huge sales spikes for the manufacturers who are creating the hardware inside the boxes. According to a DigiTimes report, component orders that were originally estimated at 9 to 12 million units are now rumored to have been increased to 15 million units for each console. The report cites unnamed “sources from the upstream supply chain” as saying pre-order demand in the U.S. and Europe has been higher than expected.
In particular, the consoles are driving demand for camera lenses. DigiTimes’ sources point to Taiwan lens manufacturer Newmax, which has announced that it will expand its production capacity. Newmax is believed to be a supplier for Microsoft, which is packaging one of its Kinect camera-based movement controllers in with every Xbox One console. Likewise, Tiawan lens manufacturer Kinko Optical has also announced a manufacturing capacity investment, and is known to be a supplier for Sony’s PlayStation 4.