Phil Spencer Expects Demand to Outstrip Supply This Holiday for Xbox - News
by William D'Angelo , posted on 01 September 2022 / 3,762 Views
Microsoft Gaming CEO Phil Spencer in an interview with Bloomberg said he expects demand for video game consoles will outstrip the available supply this holiday. However, he does say that supply is improving.
"I still think demand will outstrip supply for us this holiday," he said. "We'll see when we get into 2023. You'll start to see more, that supply is catching up with demand, and maybe actually see one in the store when you walk in."
Xbox CFO Tim Stuart in June also stated the supply chain issues will continue through the 2022 Holiday season as the stock issues have been impacted by the lockdowns in China.
"The supply chain environment could remain rocky through 2022 and the Holiday season," said Stuart.
Stuart said limited parts are causing issues with manufacturers and "elevated logistics pricing pressuring margins." The limited parts he says "favor Series S consoles."
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.
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Probably true for all 3 manufacturers
That is something everyone was expecting. Well perhaps Series S may have a little amount of units sitting on shelves.
Yeah, I have yet to see any flavour of PS5 or Xbox Series console on a store shelf here in Canada. Though I have no doubt that there are regional variations around the world. I can now frequently buy an Series S console online, and have now a couple of times seen Series X available for purchase online, but I'm not checking every second of every day.
Yep, from MS talk it seems like they are close to being matching demand and supply, but with stocking for Holidays that is something that will only be marginal oversupply would be 2023. At least for Series X. Series S in several markets seem to be "easy" to find at MSRP.
Yeah, 100% agreed. I expect to see either price adjustments to Series S, or significant Series S bundles, or both, no later than spring 2023. Perhaps as soon as Black Friday 2022.
I expect the same for Series X, but not until about a year later.
It’s been 2 years where I can easily find Series S in stores and even supermarkets, so yeah, no issue at all finding an Xbox
The Series S hasn't even been out for two years, and was broadly reported as being very hard to find at launch, so your statement doesn't track.
Yeah, but no, I can assure you it’s been on shelves from the beginning
I did not speak about your anecdotal experience wherever you happen to reside. I said the Series S "was broadly reported as being very hard to find at launch". That's fact, as I can point to any number of news articles from around the world that asserted the Series S was very hard to find at launch. Your experience to the contrary in your town does not invalidate my statement.
I would add that, while I don't check every day, I still have yet to see a Series S for sale on a shelf where I live in Canada. But Canada has been an unusually strong market for the Xbox from the very beginning, often even stronger (per capita) than the Xbox is in the U.S.
But my anecdotal experience is no more useful than yours, since my town and your town are both very, very small chunks of the global market.
Well of course an experience based on several countries vs one small town isn’t as valuable
I note with interest that you responded to only the briefest of my points. Conceding all the others then?
Since my main (not replied to) point in the recent pair of comments was about how it was reported in the media, not what your experience or my experience was, I believe my comment is objectively correct (vs. the subjectivity of our experiences).
Nope, I was just answering on my phone while I was checking all the Series X sitting on shelves I saw in a store
Your hyperbole makes your claims less credible.
I even took a picture
I didn't say your observation was inaccurate, I said your hyperbole makes your claims less credible, and I stand by that observation. However, your experiences are anecdotal so I am not taking them as credible when they are challenged by less subjective data points.
I took another picture yesterday while I was abroad checking some electronic stuff
This thread was kicked off by the statement that "Series S hasn't even been out for two years, and was broadly reported as being very hard to find at launch".
In other words, your experience yesterday is not relevant to the discussion.
And you continue to not respond to the majority of the other points, so I (and anyone else reading this) can only presume you have ceded every other point.
From all we know I would say Series S is regularly available in most markets over the past 12 months, but sure during the first 6-12months it was mostly sold out.
You have commented in the comment that is hidden due to negative reactions. Good to know that X seems to be with good inventory over there.
Yeah, for sure. Series S has become readily available faster than most other current-gen systems. No question. A mix of it being easier/faster to produce, and the fact that it's not really an "early adopter" kind of console, I think.
Well when you state that the Series S being widely available around the globe, even on the internet isn’t relevant cause it’s not available according to what you say, there is nothing much else to say, isn’t it.
« Yeah but Phil told the demand was higher » yeah Phil says a lot of things
I'm legitimately not 100% sure of what you're getting at, because the grammar and your run-on sentence is obscuring your meaning. I'm not trying to be pedantic or being the grammar police, I'm saying your statement actually doesn't appear to have any clear meaning, so if you'd clarify then I'd be in a better position to reply.
My statement was that the Series S was reported in the media to be very hard to find at launch (true), and I've added that after launch it remained harder to find for a while in some markets than others (also true).
You've made some anecdotal comments about your personal experiences, and they're interesting but they don't disprove either of my above statements.
Well don’t then
You don't prefer your comments to be broadly understood?
I gave up hope years ago
A quick look around tell me the Xbox situation has already greatly improved. At least in Canada. It has been in stock quite consistently on amazon, best buy, walmart though I don't doubt will be back at "sold out everywhere" when the holiday season is in full swing.
Oh thank god. It’s been more than a couple of days since we’ve been told what’s on Phil Spencer’s mind.
been in stock most of the year so dont complain if cant get one if leave it til last min
Unlikely, here many families are having to turn to second hand stuff and sell unwanted things to survive. Phil is like a politician, devoid of any reality.
Nothing he is saying is controversial or wrong. Demand might be less than previous years, but it always increases during the holidays, and it won't be different this year. Can they match that demand? Not if supply continues the way it has been.
Yep. In this thread I didn't see anything wrong from Phil, stated the facts.
