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  • Market Equilibrium Case Study

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    Tya-Marie Toussaint
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    Sony has increased planned production of the PS5 for its first year from 5-6 million units to 9-10 million units due to high demand. This suggests supply may better meet demand, so consumers may have a slightly higher chance of securing a PS5 preorder. However, if Sony is unable to produce enough units to satisfy demand, it could negatively impact the company's finances and reputation. Over time, as the PS5 becomes more available and the newness wears off, demand is expected to decrease. Sony will likely adjust future production based on demand trends and may eventually lower the price from its current $1099 level as the console ages.

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    market equilibrium case study

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    Sony has increased planned production of the PS5 for its first year from 5-6 million units to 9-10 million units due to high demand. This suggests supply may better meet demand, so consumers may have a slightly higher chance of securing a PS5 preorder. However, if Sony is unable to produce enough units to satisfy demand, it could negatively impact the company's finances and reputation. Over time, as the PS5 becomes more available and the newness wears off, demand is expected to decrease. Sony will likely adjust future production based on demand trends and may eventually lower the price from its current $1099 level as the console ages.

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    © All Rights Reserved
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    51 views2 pages

    Market Equilibrium Case Study

    Uploaded by

    Tya-Marie Toussaint
    Sony has increased planned production of the PS5 for its first year from 5-6 million units to 9-10 million units due to high demand. This suggests supply may better meet demand, so consumers may have a slightly higher chance of securing a PS5 preorder. However, if Sony is unable to produce enough units to satisfy demand, it could negatively impact the company's finances and reputation. Over time, as the PS5 becomes more available and the newness wears off, demand is expected to decrease. Sony will likely adjust future production based on demand trends and may eventually lower the price from its current $1099 level as the console ages.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Right now can you easily get a PS5? What is the problem with getting a PS5?

    ____________________________________________________________________________
    ____________________________________________________________________________
    ____________________________________________________________________________

    What does this ad say?__________________________


    Is the supply enough to keep up with demand? __________
    Which is greater, supply or demand?_________________
    Currently what is taking place with the PS5 as a result of this situation?

    ___________________________________________________________________________
    ___________________________________________________________________________

    Sony May Make 10 Million PS5 Units This Year, So You Might
    Actually Snag One In 2020
    Kris HoltContributor
    Games
    I cover all things Overwatch and sometimes some other games.
    You might have a slightly better chance of locking in a PS5 pre-order when Sony finally opens them
    up. The company has boosted its initial PlayStation 5 production orders to between 9 million and 10
    million units, according to Nikkei and Bloomberg Japan. Previous reports suggested it was planning
    to build 5 million to 6 million units this year, and the latest figures reflect enormous demand for the
    PS5.
    If Sony fails to produce enough units how will that affect the company?

    ___________________________________________________________________________
    ___________________________________________________________________________
    ___________________________________________________________________________

    Eventually what will happen to the level of demand for the PS5 as time passes and it becomes
    commonplace and the novelty wears off?

    ___________________________________________________________________________
    ___________________________________________________________________________
    ___________________________________________________________________________

    Would Sony continue to produce the amount of units mentioned above? How would their
    production change?

    __________________________________________________________________________
    __________________________________________________________________________
    __________________________________________________________________________

    What would happen if Sony continued to produce 9-10 million units?

    __________________________________________________________________________
    Do you expect the current price of $1099.23 US to remain? What do you think will happen to the
    price as time passes?

    __________________________________________________________________________
    __________________________________________________________________________
    __________________________________________________________________________
    Why do firms adjust prices?

    _________________________________________________________________________
    _________________________________________________________________________
    How do they decide on the final price?

    _________________________________________________________________________
    _________________________________________________________________________

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