June 8—Sony’s imminent manufacturing of its PlayStation 5 will increase annual demand for NAND modules by 5 percent, reports Business Korea. As the system will come equipped with SSD memory instead of traditional HDD, its mass production will drive market growth.
The publication notes the conglomerate’s suppliers will begin PS5 component fabrication this week ahead of the system’s launch in Q4.
PS5 to Increase NAND Demand
Scheduled for release this fall, the PS5 will house an array of high-end hardware to appeal to performance-minded gamers. As part of its forward-thinking build, the system will feature 825 GB SSD in on-board storage. Coupled with 16 GB of GDDR6 RAM, the console will be capable of processing 5 GB of game data in one second.
In April, Bloomberg reported that Sony intends to manufacture between 5 million and 6 million PS5s through March 2021.
BusinessKorea estimates PS5 assembly will cause a 5 percent uptick in global interest for the non-volatile storage product year-over-year.
A Rising Tide Raises All Ships
Provided BusinessKorea’s forecast is realized, the world’s NAND manufacturers should experience robust sales through the next few quarters.
Last month, DRAMeXchange published a report indicating the global NAND market grew by 8.3 percent from Q4 2019. The organization explained COVID-19 work from home transitions caused online service providers to utilize SSD modules to optimize their data centers. As remote workforces are becoming increasingly popular in the tech sector, NAND sales and pricing increases should continue through the current period.
As PS5 mass production ramps up in Q3, NAND vendors will likely experience consistent revenue growth in the September quarter.
Besides, Microsoft will probably direct its suppliers to begin making components for its Xbox Series X console. Like its Sony-made competitor, the console is set for release in the holiday quarter and will come standard will a custom 1 TB NVME SSD drive. The system’s rollout should keep the flash memory market afloat in the third quarter and beyond.
As such, the unexpected combination of increased data center demand and major video game console releases could act as a rising tide for major NAND providers like Samsung, SK Hynix, Micron, and Western Digital.