Microsoft anticipates that Xbox Series X/S shortages may well persist for another six months before supply and demand to balance out.
Bad news for those still holding out hope of picking up an Xbox Series X/S anytime soon: Microsoft anticipates that supply shortages will persist until April 2021, if not later.
Speaking at the Jefferies Interactive Entertainment conference last week, Xbox CFO Tim Stuart responded to an inquiry about Microsoft’s strategy to respond to the massive demand for the consoles.
“I think we’ll continue to see supply shortages as we head into the post-holiday quarter, so Microsoft’s Q3, calendar Q1.”
Stuart notes that the gaming giant expects the supply and demand to balance out from April to June next year.
“And then, when we get to Q4, all of our supply chain continuing to go full speed heading into kind of the pre-summer months. And that’s where I start to – I expect to see a little bit of the demand – the supply profile, meeting the demand profile. We’ll have supply cranking over the next, what, 4, 5, 6 months. And that’s when I expect to see really that demand profile start to be met.”
According to Microsoft, last week’s launch of the Xbox Series X/S stands as the biggest in Xbox history. Pre-orders, which launched back in September, sold out within hours, and day one stocks, available for a short time when the consoles arrived on Nov. 10, followed suit.
An Xbox Wire update published last week struck an optimistic note, as Microsoft plans to release limited Xbox Series X/S stock in the months ahead.
“We know that not everyone was able to get an Xbox Series X/S immediately and are working tirelessly with our partners around the world to bring as many new consoles to as many of you as possible over time and encourage you to check in with your local retailers directly for more details on availability in your market.”
When this might happen remains unclear, with would-be owners left to consider the scalper market on auction sites as one of the few viable avenues to obtain a console. As you might imagine, vastly inflated prices, reaching $20,000 in some cases, define the thousands of listings.
Shortages of both the PS5 and Xbox Series X/S mean both platform holders have fared well in the early days of this new generation. The disparity between supply and demand has framed this as one of the most competitive console launches in decades.
It will be months before we get a real sense of whether either console has taken a significant lead over the other. Xbox head Phil Spencer posits that the merits of Sony and Microsoft’s respective manufacturing supply chains will dictate who will come out on top.
Last modified: December 3, 2020 7:59 PM