Console supply constraints will endure until 2022, according to Xbox CEO

Phil Spencer, Microsoft's Xbox boss, predicts that console supply issues will persist into 2022. Due to supply chain complications beyond just a chip shortage, Spencer admits that the Xbox supply issues will last for the rest of the year and into 2022.

“I think it’s probably too isolated to talk about it as just a chip problem,” says Spencer. “When I think about, what does it mean to get the parts necessary to build a console today, and then get it to the markets where the demand is, there are multiple kind of pinch points in that process. And I think regretfully it’s going to be with us for months and months, definitely through the end of this calendar year and into the next calendar year.”

For the past 18 months, various companies have been impacted by the global chip shortage. Vehicle manufacturers have had to reduce production, and finding new graphics cards, PS5s, and Xbox consoles has been nearly impossible.

Spencer is not the only one who thinks supply issues will be a problem. TSMC, a chip manufacturer, warned earlier this year that chip shortages in the industry could last until 2022. Nvidia predicted GPU supply constraints for the "vast majority" of 2022 last month.