The latest generation of console gaming kicked off in 2020, with Microsoft’s Xbox Series X and Series S models launching on November 10 and the Sony
Playstation 5 releasing shortly after on November 12. While the launches of each console have been successful, the global COVID-19 pandemic and related challenges have resulted in severe shortages. Unfortunately for gamers, industry experts forecast these shortages to continue well into 2022, if not 2023.
The primary reason for the delay, which has impacted virtually every corner of the technology industry, involves a shortage of semiconductor chips. Takeshi Kamebuchi, director of Toshiba’s semiconductor business, said chip supplies will remain “very tight until at least September [2022]” and that customers in specific regions will not be “fully served until 2023.” Toshiba plans to invest about $545 million into semiconductor production through 2024 and has discussed building another factory. Intel, meanwhile, recently broke ground on two new factories in Chandler, Arizona, at the cost of about $20 billion.
Kamebuchi mentioned the gaming industry when speaking to Bloomberg about the chip shortage, saying that Sony and Microsoft were two companies placing the greatest demand for new chips and that hardware is likely to remain scarce until the chip shortage is addressed.
In February, United States President Joe Biden signed an executive order to investigate the shortage of components needed to build the consoles. The executive order was signed at the urging of Sony and Microsoft, who reached out to 15 different organizations for help in resolving the matter, including the US Chamber of Commerce. Biden agreed, with an eye on a stable American and global economy. However, it should be noted semiconductors are also used to make solid-state lasers that allow for missile targeting technology.
As stated, while the pandemic and related shortages have made it difficult for consumers to get a console at the moment of their choosing, it has not resulted in stunted sales for Microsoft or Sony. Microsoft recorded an estimated 6.5 million units sold through the first half of 2021. The Playstation 5 has become the fastest-selling console in Sony’s history, moving more than 10 million units entering September. Xbox hardware revenue increased by 172 percent year-over-year in fiscal Q4 2021 as Microsoft’s gaming segment yielded $3.7 billion in revenue, an 11 percent increase over the previous year. Sony, meanwhile, estimates sales will approach 15 million by March 2022.
The demand for consoles can be seen whenever new stock is made available. Insomniac Games’ Spider-Man: Miles Morales, released alongside the PS5, has repeatedly jumped and fell on the sales chart depending on PS5 availability. The game has seen sales spikes upwards of 170 percent following restocks, and PS5 games, in general, improve by more than 60 percent when consoles are made available, indicating that customers are willing and ready to buy hardware and games as soon as possible.
While it may be a coincidence, both Microsoft and Sony have been relatively slow in releasing console exclusives amidst console shortages. As of September 2021, Sony has released just eight games exclusive to the console, while Microsoft has delayed several marquee titles, including Halo Infinite and Far Cry 6.