TECH NEWS – Xbox CFO Tim Stuart has confirmed that the Xbox Series X console supply shortage could continue into 2022 due to several issues.

While gamers continue to scramble to purchase a PS5 or Xbox Series X, many are waiting for the next big wave of console shipments to arrive in local retail stores. However, according to Xbox CFO Tim Stuart, these gamers could still face difficulties buying Series X in 2022 and 2023.

During a recent investor call spotted by Games Industry.biz, Xbox chief Tim Stuart confirmed that supply chain issues could still occur in 2023.

There are several factors at play in the console shortage. Both the PS5 and Xbox Series X/S were released around the start of the global epidemic, which has caused chip shortages to date and could persist for the rest of the year. This shortage means that some enthusiasts trying to get their hands on a console may be unable to get their hands on their machine for another year of the next-generation console’s lifecycle.

Speaking about the global inventory problems and the ongoing chip shortage affecting Series X consoles, Tim Stuart confirmed to the company’s investors that the Series S is less affected by the restrictions and should be more widely available than the Series X. Stuart said that the Series X has been available for nearly 18 months and that the forecast for 2022 suggests that supply could be limited for at least another six months.

The pumped-up economy is also taking its toll on the company as it struggles to maintain Xbox Series X/S pricing due to “increased logistics prices pushing down margins”, which could result in price increases.

Tim Stuart isn’t the only company executive to have spoken to investors about the issues affecting the company, as Microsoft CFO Amy Hood also said she expects a year-on-year revenue decline due to “lower engagement hours” and “limited console supply”. Given that at Microsoft, Xbox has gained market share ahead of PlayStation and Nintendo for two consecutive quarters and recently posted record revenue in a quarter without a holiday, the shortfall may affect the company less than if it had not been as successful over the past 18 months. Although the company has confirmed the extension of the console shortage, the PS5 could be just as difficult to source as there are shortages of similar parts to Microsoft’s machines.

As the Series X is much worse affected by the supply chain than the Series S, the company may be expecting the lower-end machine to continue to sell while it sorts out its ‘big brother’ problems. Given that current inflation was briefly alluded to during Baird’s investor call, the company may be expecting lower revenue because people have less disposable income. The company currently sees no end in sight to its supply chain woes, so it’s unclear when the Xbox Series X will be readily available at retail.

Source: Games Industry