According to reports, Xbox CFO Tim Stuart stated that supply chain problems hurting the games sector would likely remain throughout the year. Stuart noted on an investor call held by financial services firm Baird that the supply chain situation might stay bumpy into 2022 and the Christmas season. Also, he said that recent Chinese lockdowns had harmed the supply chain.
Xbox Series X Stocks May Still Be Low in 2022
The gaming and tech industry has struggled with logistics issues since the pandemic began two years ago. Big tech companies like Intel, AMD, PlayStation, and Xbox face two big problems – supply chain issues and chip shortages.
Xbox’s Tim Stuart said that logistics problems for Xbox meeting with investors implied that Xbox Series X/S stocks will still be low until the end of 2022. According to Xbox CFO, manufacturers are dealing with two issues: limited components, which he claims “favor Series S consoles,” and “elevated logistical price compressing margins.”
Over the last few years, the games industry has been plagued by supply chain challenges. Due to a continuing shortage of semiconductors and other critical components, Sony has cut its PlayStation 5 prediction for the coming fiscal year to 18 million consoles.
As we mentioned before, while the console has met expectations, supply has yet to reach that height. Sony’s report states that the PS5 was in exceptional demand compared to the PS4 launch in 2014. While the last generation device struggled to sell 80 thousand units in under two weeks, Sony’s PS5 managed that many sales and millions more in less than 2 hours.
Due to the chip shortage, Nintendo’s full-year figures indicated a modest drop in sales last month. Also, Intel CEO Pat Gelsinger expressed his concerns about supply chain challenges in May, predicting that the current shortfall will endure until 2024.
So what do you think of the Xbox CFO’s statement about supply chain problems? Let us know in the comments section below!