Why getting an Xbox Series X in becoming increasingly difficult

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Getting an Xbox Series X is right now almost an impossible mission, and unless you want to pay the surcharge imposed by the infamous ‘scalpers’ (resellers) available units “fly” as soon as a store offers them to users. The supply is scarce, the demand enormous. The problem is far from being solved. Microsoft confirmed will keep experiencing problems manufacturing Xbox Series X until at least June.



Sony nor Microsoft are the ones to blame

The new Xbox Series S/X and the PS5 became, like the latest generation graphics cards, high valued products. The shortage of units makes buying those consoles or cards at recommended prices nowadays almost impossible.

If you are in a hurry, the only option to buy the latest Xbox is to go to the resale market that “exploded” on sites like eBay. That is the same market that makes an Xbox Series X cost at least 100 euros more than its original price. The ‘scalpers’ or resellers are inflating their pockets, and neither eBay nor Microsoft or the stores that sell the consoles are officially putting a stop to that problem.

The reasons are varied, but one of them lies in the shortage of components. The CEO of AMD, Lisa Su, already warned us about the production capacity of its chips(which are present in both Sony and Microsoft consoles) will not be able to meet the demand until the second half of the year.

It is evident that this is an essential factor to a problem that is preventing thousands and probably millions of users around the world from getting their console units because of the Xbox shortage.

Xbox shortage

Is Microsoft ok with the Xbox shortage?

Mike Spencer, General Manager of Investor Relations in Microsoft, indicated in a recent interview how the problems getting an Xbox Series X will continue to be present until at least the month of June. The CEO of Sony already indicated in November how with the PS5 the problem was very similar when saying that “absolutely everything is sold”.

This Xbox shortage is also potentially influenced by another factor that adds to the intention to control supply and demand. This is an obvious reality: both Sony and Microsoft lose money with each console they sell, which is a disincentive to build many units initially.

The cost of components and manufacturing processes decreases over time, reducing the money lost with each console. At a certain point, of course, the consoles stop making these manufacturers lose money and manage to sell themselves with a profit margin that may not be spectacular, but that of course makes that economic problem disappear for companies.

Thus, to the shortage of components is added that intention of Microsoft and Sony to control supply and demand, but also probably the fact that it is simply not convenient for them to manufacture and sell too many consoles right now, because they lose money with this. It only remains to be patient.

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