The gaming market right now is in a strange place. Usually, if you hear the term that consoles are “out of stock,” it’s because the makers underestimated how many they would need for a certain timeframe and thus didn’t have enough for everyone, not unlike what happened with the Nintendo Wii and Switch when they were released. Now, the Switch, the PS5, and the Xbox Series X are facing a different “sold out” problem.
The systems are sold out not just because of fan demand, but because of a shortage of parts needed to make the systems. Semiconductors are in short supply and have been for well over a year now. That’s especially bad for Xbox and Sony due to how they basically launched their systems during the shortage, and as a result, they’re not able to make all the consoles they want or need to in order to fill fan demand. Nintendo is having the same issues and has had to adjust its fiscal year projections to try and cope with this loss.
How the three companies are handling the situation is very different. Nintendo has noted that while projections will be lower, they aren’t going to raise the price to try and compensate. In contrast, Sony announced that the PS5 will see a price increase in certain parts of the world, including Europe and Australia. The United States won’t be impacted by the price hike.
According to Sony, the reason for this is because of inflation, though many aren’t going to be happy with that explanation.
So, where does Microsoft fall in on this? That would be the path that Nintendo took. In a chat, a person from Microsoft made it clear that their gaming products won’t get the increase:
“We are constantly evaluating our business to offer our fans great gaming options,” a spokesperson noted of the situation. “Our Xbox Series S suggested retail price remains from £249.99 and the Xbox Series X is from £449.99.”
One analyst has said that this price increase won’t affect sales that much due to how badly people want the PS5, but whether that’s true will be something to be seen.
What this does prove is the fact that this situation isn’t going to end anytime soon, and each of the Big 3 is going to have to see how things evolve, and whether to hold firm or try and recoup some of what they’re losing.
Source: VGC
