Supply chain issues have crippled the video game market.
Gamers still struggle to get their hands on the latest-gen consoles, and according to Xbox CFO Tim Stuart, the supply chain issues are likely to persist throughout the year, as reported by GameIndustry.Biz.
“The supply chain environment could remain rocky through 2022 and the holiday season,” said Stuart in an investor call hosted by financial services company Baird. Stuart adds that the recent lockdowns in China are contributing to the issue, with manufacturers facing “limited parts” and “elevated logistics pricing pressuring margins.”
Similarly, Intel CEO Pat Gelsinger recently said that he believes the chip shortage could take up to 2024 to subside. “We believe the overall semiconductor shortage will now drift into 2024, from our earlier estimates in 2023, just because the shortages have now hit equipment and some of those factory ramps will be more challenged,” Gelsinger said in an interview with CNBC’s TechCheck.
Additionally, Sony had previously estimated to sell 22.6 million PS5 units in the next financial year, though that number has been rescinded to 18 million.
The global chip shortage first began during the COVID-19 pandemic. Currently, chip manufacturing factories globally continue to face numerous disruptions and closures, while demand for products continues to rise as the need for semiconductors for consumer tech products is never-ending.
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