Low Supply of AMD Chips Causing PS5 and Xbox Shortage

PS5 & Xbox Series X

If you haven’t been lucky enough to snag a perpetually-sold-out next-gen console due to the PS5 and Xbox shortage, you may have a bit longer to wait. AMD has recently stated in their Q4 2020 earnings report that they anticipate the chip shortages to last until the second half of 2021, which will affect both the next-gen console and PC market.

While scalpers have been the major factor in the shortage of the PlayStation 5 and Xbox Series X/S, yesterday’s report by AMD has revealed that scalpers are not the only reason next gen consoles are in short supply.

AMD’s CEO Lisa Su has shed some light on the situation, citing supply constraints due to the ongoing COVID-19 pandemic, stating ‘overall demand exceeded our planning’. The US-China trade war was also a major factor in causing the chip shortage.

As AMD are the manufacturers of both the current and next-gen PlayStation and Xbox’s CPU and GPU chipsets, this means that the PS5 and Xbox shortage will last until at least June 2021.

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Unfortunately for PC gamers looking for an AMD upgrade, the current chip shortage also extends to the PC market. Tom’s Hardware has also reported that the company is currently impacted by packing shortages, causing further delays to chips that may otherwise be ready for distribution.

Credit: AMD

Of course, with the majority of the world constrained to their homes due to local lockdowns, it’s no surprise that sales of consoles have been at an all time high even after Christmas, despite the usual trend of a slump in console purchases during the first few months of the new year.

Previously, in November 2020, Microsoft’s CFO Tim Stuart had given an estimate of Q1 of 2021 for better availability of the Xbox Series X/S, stating ‘I think we’ll continue to see supply shortages as we head into the post-holiday quarter, so Microsoft’s Q3, calendar Q1 [the period ending March 31, 2021]

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2020 was a record breaking year for AMD, with revenue up 53% in comparison to 2019, making them a cool $3.24 billion, and a net income of $1.78 billion. This is no doubt partly due to the overwhelming success of their Ryzen 5000 processors, which are also used in Sony and Microsoft’s next gen consoles.

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