Supply chain issues have been plaguing the video game industry for years now. Whether a gamer is struggling to get their hands on a new graphics card or can't find a new PS5 despite hours of searching, a lot of the problems stem from the supply chain. This has caused the sales of video game consoles to dip, even with demand being so high. Nintendo reported a drop in hardware sales in its Q1 financial report, and now Xbox Boss Phil Spencer believes the green brand may also not be able to meet demands as supply issues continue.
Speaking to Bloomberg, Spencer gave an update on how Xbox is dealing with the supply chain issues. Spencer confirmed that Xbox is still struggling with meeting the demand for Xbox Series X and S consoles, and he doesn't seem too hopeful about the supply situation getting better before the holiday season. "I still think demand will outstrip supply for us this holiday," Spencer said, but the Xbox Boss remains hopeful that the issues won't last forever.
Further in his statement, Phil Spencer shared that he thinks the situation will improve in 2023 and gamers will begin to see that supply is catching up with demand. Spencer even stated there's a chance of a gamer seeing an Xbox "in the store when [they] walk in." Spencer's comments about the supply chain issues lasting until the end of 2022 line up with a June statement from Xbox's Chief Financial Officer Tim Stuart, who also expressed a belief that the shortages would continue through the end of the year.
This doesn't mean that Xbox Series X and S sales have necessarily been suffering. Compared to the PS5, the Xbox Series X has managed to outsell its major competitor on multiple occasions. While few gamers truly believe in the console war in 2022, to see that the Xbox Series X has beaten the PS5 in terms of sales multiple times still is an impressive feat.
It seems that some gamers may have even more reason to pick up an Xbox over Sony's counterpart soon, with PlayStation recently revealing that the price of the PS5 would increase in multiple regions by around 10%. On the other hand, Xbox has stated that it won't be increasing the price of the Xbox Series X/S for now. A spokesperson from Microsoft said that while the company is always evaluating its business, the Xbox Series X and S will keep their current price tags for the time being.