Global chip shortage affecting PS5 and Xbox Series X supplies

Global chip shortage affecting PS5 and Xbox Series X supplies

A global chip shortage is the main culprit for the endless problem of limited stocks available for the PS5 and Xbox Series X.

At first, it was just the PS5 that had limited stocks available. As a result, people flocked to the competitor, Xbox Series X. Unfortunately, the ghost of limited availability has followed the trend to Microsoft.

The problem is bigger than what Sony and Microsoft can handle. It is actually a global problem that has plagued all tech companies that rely on chips to run their products.

Global chip shortage not just affecting PS5 production

In a tell-all interview with CNET, the incoming Qualcomm CEO, Cristiano Amon, shared the problem that many tech companies are facing.

He said that the issue lies with global chip manufacturing. It just cannot keep up with the demand worldwide. Before the pandemic happened, orders for chips were high. However, at its onset, tech companies started cutting down their purchases because of the low sales forecast.

As the world started shifting online midway through the pandemic, the same tech companies realized that there is actually a whole new market evolving before their eyes. As such, they started ramping up their orders again. Unfortunately, the fabrication of chipsets couldn’t keep up.

This problem is big enough to keep Amon awake at night. He said that this issue of shortage is infamous across the entire tech world.

Even up to now, Sony and Microsoft are struggling to keep up with the demand for their new gaming consoles. As soon as new stocks hit stores, they just get gobbled up by the long waitlist.

Problem to persist until the end of 2021

Is there a silver lining to the issue? Amon’s answer to that is a strong ‘no.’ He said that the problem might persist until the end of the year. In other words, the same problem that haunted the majority of tech companies last year will most likely be the same issue that they will face this year.

Finding a solution to the problem is not an overnight process. It will take billions of dollars for a new factory to be built to keep up with the demand. However, the problem doesn’t lie with the funds. If there is money to be earned in the business, investors are expected to pour in their funds.

Unfortunately, the problem is more because of the time constraint rather than the availability of funds. Setting up a factory alone will take more than a year to finish. By then, the availability of chipsets may already be overflowing. So what can the consumers do?

Sit tight and be patient while waiting for the industry of chip manufacturing to keep up with the demand.

 

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