Technology

Supply chain failed demand and leads shortages of new-generation consoles

Analysts see shortages of consoles from Sony and rival Microsoft, which launched Xbox devices last Tuesday, extending into 2021

An employee of the consumer electronics retailer chain Bic Camera works at the promotion display for the Sony PlayStation 5 game console and its gaming softwares in Tokyo, Japan, November 10, 2020. Picture taken November 10, 2020. Photo: REUTERS/Issei Kato
  • At the day of the launch, PS5 console was sold out on major retailing sites in Japan and the United States;
  • Microsoft CFO Tim Stuart also said that he expected the consoles shortages to continue into the first calendar quarter of 2021.

Microsoft has warned that at least until the end of April 2021 there will be shortages of the new launched consoles Xbox Series X and Series S. Without disclosing numbers, the company said the demand is high, as the sale at the launch of the new consoles was the best of its history. Also, last week Sony’s PlayStation 5 was launched in core markets to intense interest online.

READ ALSO: Sony seeing ‘very considerable’ PS5 demand ahead of launch

The next-generation console was sold out on major retailing sites in Japan and the United States, with some conducting lotteries to distribute limited stock.

Engadget, IGN and Eurogamer reported that Microsoft CFO Tim Stuart said that he expected the consoles shortages to continue into the first calendar quarter of 2021 and fans might not see supply catch up with demand until the April quarter, he said.

The COVID-19 pandemic has driven a boom in gaming demand, but Sony has made the launch sale online only to maintain social distancing, calling for consumers to “be safe, stay home, and place your order online.”

READ ALSO: Sony PlayStation 5 to launch on November 12 in Mexico, and November 19 in other Latin American countries

Major U.S. retailers Amazon, Best Buy and Gamestop appeared to be out of stock moments after the PS5 went on sale. Demand for the PS5, which offers cutting-edge graphics, faster load times, and a new controller with immersive feedback, has been exacerbated by the pandemic, which has seen consumers flock to gaming but has strained supply chains.

READ ALSO: Microsoft takes aim at Sony with the launch of a cloud gaming service

Analysts see shortages of consoles from Sony and rival Microsoft, which launched Xbox devices on last Tuesday, extending into 2021.