A report from Bloomberg alleges that it "get worse before it gets better" regarding the shortages of the PlayStation 5 and the Xbox Series X. Hooray.
The basis for this claim is something that we're all very familiar with, and we'll need to turn the clocks back to grasp the gravity of the situation for the electronics industry. "The virus pandemic, social distancing in factories, and soaring competition from tablets, laptops and electric cars are causing some of the toughest conditions for ... component supply in many years," said Strategy Analytics analyst Neil Mawston in the report. In spring 2020, companies started to notice that their supply and demand would be significantly impacted by the restricted activity of manufacturing hubs in Asia.
Lots of us had to stay at home to stop the spread of the virus, and strain was placed upon the electronics industry to keep in contact with loved ones, to ensure work continued smoothly while out of offices, and for our own entertainment under lockdown. The report also alleges that "excessive stockpiling" by the tech giants that could afford to buy large volumes of parts throughout 2020 meant that companies like Sony, Microsoft, and Nintendo haven't been able to fulfil demand for their consoles. According to anonymous sources, "the game hardware industry is bracing for supply to get worse before it gets better in 2021, potentially even affecting the next holiday season."
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Not ideal. Trying to buy a PlayStation 5 or Xbox Series X is a headache and a half, as customers attempt to get ahead of the hundreds and hundreds of other players who are also watching retailer announcements like a hawk. Sony itself has confirmed that the semiconductor shortage will likely affect PlayStation 5 stock into the next fiscal year. "When we try to increase our capacity, we face difficulties because of this global situation. However, we are doing our best to exceed the original plan in terms of shipments," said chief financial officer Hiroki Totoki.
Furthermore, AMD has said that it expects to encounter problems with supply for the first half of this year. As the company that builds the CPUs for the PlayStation 5 and Xbox Series X, this is another alarming admission when it comes to the challenge of snagging a new console.
It might seem like it's all a bit pointless now, but hang on. Right now, your best bet is to follow the social media accounts of the big and small retailers in your area, and jump on the new stock as soon as it's announced. With the UK government taking action against scalping groups for their "fraudulent cybercriminal activity," there is hope that these products will go out to legitimate customers.
Featured Image Credit: Sony, MicrosoftTopics: Xbox, News, PlayStation