The gaming industry was booming in 2020, many thanks to sheltering in place orders worldwide to contain COVID-19. And with the release of Microsoft’s next-gen Xbox and Sony’s PS5 consoles, the demand has been massive, with companies failing to meet market demand. Part of the shortage has been caused by a disruption in supply chains caused by the pandemic.
But the shortage issues don’t seem to end anytime soon.
To those who have been planning to grab Microsoft’s Xbox Series X/S consoles sooner than later, don’t expect to get them for their worth. Because the demand is still high and the supply can’t keep up.
A Microsoft executive said that the market would be underserved until at least through June.
You know what that means: the gamer vs. scalper conflicts continue.
Previously, Microsoft had warned that the shortage of its newest consoles would last at least until April this year or beyond. The further adjustment shows how big the demand for the Xbox Series S/X console really is.
Mike Spencer, Microsoft’s head of investor relations, said the company had made $5 billion in gaming revenue for the first time. He says Microsoft sold all of its Xbox units in three months to December 31st.
The company previously promised to ramp up its production to try and meet the massive demand.
However, AMD, which produces graphics cards for the next-gen PS5 and Xbox Series X, has warned of shortages and expects resources will be strained in the first half of the year.
“…we do see some tightness through the first half of the year, but there’s added capacity in the second half,” AMD CEO Lisa Su said in an earnings call last week.
The supply shortage, which in part can be attributed to scalpers, has seen prices of the next-gen consoles go through the roof since launch. The cost of new GPU cards has also risen.
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