Console Supply Issues Might "Remain Rocky" Until 2023, Xbox Exec Says

Limited availability for parts and higher logistics pricing pressure are two of the main issues, Tim Stuart says.

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Xbox's chief financial officer has said the ongoing supply chain issues impacting console availability might remain challenging through 2022, suggesting it won't be very easy to find a new system until 2023.

Speaking during an investor call this week attended by GI.biz, Xbox CFO Tim Stuart said "the supply chain environment could remain rocky through 2022 and the holiday season." He added that one of the issues impacting Xbox and others is limited parts and the other is "elevated logistics pricing pressuring margins."

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Microsoft does not announce Xbox sales numbers, but the Series X|S family of systems consistently outsells the PlayStation 5 in the US, suggesting Microsoft is having an easier time with the supply issues than Sony. That could change in the future, though, as Sony is projecting a big uptick in PS5 sales in the future, suggesting Sony believes the supply chain problem may be easing up.

The PS5 recently passed 20 million units sold. Sony promised a significant "ramp-up" in PS5 production to help meet demand.

Anecdotally, it appears the Xbox Series X has been easier to find in recent months, while the Series S console is regularly available at many retailers in the US.

Despite the supply chain issues, Xbox had its best year ever in 2021 based on revenue. Xbox's fortunes are expected to only grow further with the proposed acquisition of Activision Blizzard, including the Call of Duty franchises and all of its development studios.

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