Bloomberg Predicts More Console Shortages
According to a recent Bloomberg report, the console shortages around the globe will get worse before things improve. Due to massive chip shortages, Xbox Series X/S and PS5 units aren’t being made at the production level that these gaming companies are used to and they continue to fly off store shelves faster than they can accommodate. The Xbox Series X/S and PS5 weren’t the first platforms to experience this issue, with Nintendo struggling to keep up with Switch demand when Animal Crossing: New Horizons released.
Bloomberg has officially confirmed that auto and electronic makers that significantly reduced orders for components in the early days of the pandemic have now overwhelmed chipmakers who are unable to keep up with the demand across the board. This is impacting industries beyond simply gaming, with cellphones and automotive manufacturing slowing significantly as well. The first hints of trouble in the manufacturing world occurred during the early days of the pandemic, but chipmakers still can’t keep up with the orders that are rolling in.
While the gaming and cellphone industries have been significantly impacted by these chip shortages, car manufacturers have apparently been hit the hardest, with U.S. and German leadership coming to their aid. The latest iPhone has been impacted by these chip shortages, reducing the expected production from Apple and adding significantly more orders to the chipmakers’ plates.
“The virus pandemic, social distancing in factories, and soaring competition from tablets, laptops, and electric cars are causing some of the toughest conditions for smartphone component supply in many years,” said Strategy Analytics’ analyst Neil Mawston. Are you still waiting for a new console, phone, or car? Let us know in the comments below!