Microsoft Expects Series X Inventories To Improve By June 2021

Microsoft’s Head of Investor Relations revealed disappointing news for Xbox Series X fans. In an interview, Mike Spencer advised inventories for the popular console would be tight through June. His comments left open the possibility supply constraints would persist beyond then. The Xbox Series X shortage mimics those of the PlayStation 5 and standalone graphics cards. Unfortunately, relief won’t come for the next few months.

Microsoft Reaps The Profits While Selling All The Consoles

Despite record gaming revenue, Microsoft hasn’t been able to manufacture enough consoles. The company earned $5 billion in revenue last quarter in gaming alone. It’s not an overstatement to say Microsoft sold every Series X console in inventory during that time. Since suppliers cannot meet demand, shortages persist across all retail channels. Most retailers release Xbox Series X inventory as it becomes available in limited runs.

Console Shortages Have Persisted From Day One With No Relief In Sight

Microsoft cannot procure enough GPUs and other components to build the consoles. That’s been the case since the console released in November 2020. Although Spencer targeted July 2021 for higher inventory, nothing about his statement comes with any guarantees. A previous statement from Microsoft pinpointed April 2021 for higher availability. Further constraints could persist throughout much of 2021 under the right circumstances.

Sony and Sony Fans Understand The Plight of Microsoft and Xbox Series X

Of course, Sony faces identical issues with the PlayStation 5. Retailers started selling the PS5 in November 2020 two days after the Xbox Series X hit shelves. The console remains sold out through most retailers today. Like the Series X, retailers receive new inventory of the PS5 and almost immediately run out of stock again. Increased availability for the PS5 and Xbox Series X should come in tandem at some point.

Nvidia and AMD Can’t Keep Up With Demand For Discrete GPUs Either

Even standalone GPUs from Nvidia and AMD face similar supply constraints. The two companies cannot match supply with demand. Recently, each company released powerful GPUs with next generation specifications and capabilities. GPUs sold out through all retail channels within minutes of official releases. New stock runs out within seconds and can take over a week to be replenished only to disappear soon after.

Scalpers Sow Further Chaos Into The Situation

Aside from tight inventories, all of these companies face another issue — scalpers. Low inventories and high demand mean scalpers stand to earn hefty profits. They utilize bots and other tactics to purchase consoles and GPUs in large quantities. From there, these individuals sell these products on auction sites for a huge markup. A $500 console might be sold for $1,000; a $1,000 GPU might be sold for $3,000.

Consumers Fuel Scalpers By Paying Exorbitant Markups

Extreme demand means consumers remain willing to pay these inflated prices for consoles and GPUs. Therefore, scalpers continue to engage in mass purchasing of these products. It doesn’t help retailers implement lackluster measures to prevent scalping or bot purchases. Only recently have retailers begun to implement lottery and queue systems to prevent scalpers from consuming inventories.

Is Relief In Sight For Consumers On Supply Shortages?

Consumers may take Spencer’s comments at face value and feel optimistic. Likely, the inventory situation for consoles and GPUs will improve by July 2021. Most people cannot forget about extreme GPU shortages for the previous generation of cards, though. Nvidia and AMD couldn’t keep up with demand for last year’s graphics cards either. At that time, Sony and Microsoft didn’t have a new console on the market.

How Consumers Can Find Consoles and GPUs For Sale

For now, potential buyers need to be diligent in searching for inventories. They’ll need to check multiple retailers for potential stock. It’s important to check out official announcements from retailers before new stock is released. Plus, all buyers will need a bit of luck to find their console or GPU of choice. As retailers improve anti-scalping features, ordinary consumers should find more opportunities to make a purchase.

Relief Of Some Degree Is Likely In 2021

In the end, inventories for these products should improve before 2021 ends. More and more consumers continue to land a console or graphics card. Demand will fall over time even with a constrained supply of available products. For that reason, there’s plenty of reason for consumers and gamers to feel optimistic about the future. Chipmakers and suppliers alike expect capacity to improve later this year, too.