Like Sony with the PS5, Microsoft is facing production problems for its Xbox Series X and cannot keep up with demand. Inventories are expected to remain problematic until June, at least.
The launch of the PS5 and Xbox Series X has been a huge success. Demand is at its highest thanks to a record-breaking 2020 for video games, and the arrival of new generation consoles has only reinforced this demand. Problem, the Covid-19 has been there and poses two problems: pressure on production and brakes in logistics. As a result, the consoles have been out of stock since launch.
A success at the rendezvous, but which is necessarily frustrating for those who have not succeeded in obtaining one of the famous consoles. During the presentation of the financial results, AMD, which supplies the chips for the consoles, had warned that the stockouts should continue in 2021. Today, Microsoft is providing details about the Xbox Series X.
Microsoft has sold all of its production
Mike Spencer, in charge of investor relations for Microsoft, answered questions from the New York Times, and in particular on the stock of consoles. He first indicates that stocks will be very limited at least until June. Microsoft’s previous statement on the subject pointed to April for the start of a lull, but it looks like we’ll have to be even more patient.
The expectation of an improvement in the second half of the year also comes from the increase in capacity announced by AMD. The component brand wants to increase its production capacity, but the ramp-up should take several months. As a reminder, AMD faces very strong demand for consoles, but also in the PC world where its Ryzen 5000 processors and RX 6000 graphics chips use the same manufacturing process.
In the interview, Microsoft confirms having sold all the stocks produced in 2020 for its Xbox Series X. The company is much quieter on the other hand on the S Series, its inexpensive console that is more easily found in stock for the moment. . The demand for the latter is expected to grow later in the generation. The public of enthusiasts interested in consoles from their release has obviously and logically turned to the more high-end model.