It’s no secret that the PS5 and Xbox Series X shortages are still alive. Let’s talk about the reasons why this is happening.
This generation of console can be summed up in one word: restocking.
Instead of enjoying the new games coming on these next-gen systems, some users are just waiting for replenishments.
There are so few units around it restockings only last a few seconds in some cases.
The shortage is so severe that some players are getting their PS5 and Xbox Series X canceled by retailers.
Why is this happening now with the PS5 and Xbox Series X and S consoles? Well, there are certainly valid reasons.
PS5, Xbox Series X and semiconductor chip shortage
If you are a PC gamer, the term “chip shortage” will surely remind you of something.
The next generation consoles have come at the worst time in terms of logistics and economy.
Due to the ongoing pandemic, the need for electronic devices has never been higher in history.
This strong demand for semiconductor chips for electronic devices has encountered huge logistical hurdles and scarcity of raw materials caused by global lockdowns.
So in layman’s terms, this is a case of huge demand and insufficient production.
In addition, geopolitical factors such as the Trade war between China and the United States made chip production and pricing much heavier than it was in 2019.
With all of that in mind, let’s get back to what we love and love, our consoles.
All of these semiconductor shortages have significantly slowed production of the PS5 and Xbox Series X and S consoles.
The slowdown in production is at the root of the scarcity we know today.
It has been so bad that to date neither the PS5 nor the Xbox Series X have been able to keep up with the continued demand since launch.
As the global pandemic takes its course, production of consoles has accelerated as more resources become available. However, this has still not been sufficient to meet the existing demand.
Many industry figures, such as AMD CEO Lisa Su, are chip shortage forecast could be over by 2022.
It would take a while to be conclusive, but hopefully it could be the end of a long shortage.
Record sales figures for the PS5 and Xbox Series X
Aside from the scarcity we talked about earlier, the sales numbers for the PS5 and Xbox Series X consoles are a major factor in their current shortages.
The two consoles were a huge success for Sony and Microsoft respectively.
Earlier this year, Sony announced that PS5 topped PS4 launch numbers, reaching 10 million units sold. This officially made the PS5 Sony’s best-selling console.
In contrast, achieving the same revenue took 9 months for PS4, and that was with a much more solid and stable production line.
The same story applies to the Xbox Series X and S, which Xbox One launch sales surpassed by 23% reaching 6.45 million units sold in its first 8 months.
These sales numbers combined with production challenges around the world have created the perfect scarcity storm we are witnessing today.
As for 2021, there is no end in sight for this problem at least for this year. In fact, this scarcity also affects recently launched consoles such as the Nintendo Switch OLED.