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Microsoft confirms Xbox Series X deficit will continue in 2021
Microsoft’s Xbox Series X and Series S consoles will continue to be in short supply due to strong demand, Microsoft CFO Amy Hood said in a quarterly financial report.
Demand for next-gen Xbox consoles (as well as competing Sony PlayStation 5) has been strong since launch in November 2021. Quarantine measures against COVID-19 spurred demand, and almost all purchases of consoles moved to online sites. According to numerous reports, due to a shortage, real buyers have to compete with resellers who quickly buy up existing stocks in order to then resell the goods at auctions. During high holiday demand and January, retailers continued to list new console shipments in small quantities.
Ms Hood noted that this situation will continue: “In the gaming area, we expect strong consumer engagement on the Xbox platform and significant demand for Xbox Series X and S systems, which will continue to be limited to supply only.”.
During the financial report, Microsoft executives said that Microsoft’s Xbox division’s revenues for the quarter grew 51%, of which 86% were sales of gaming devices. Microsoft CEO Satya Nadella Says Gaming Division Revenue Exceeds $ 5 Billion.
“The launch of the Xbox Series X and Series S was the most successful in our history, with a monthly record for device sales,” said the head of Microsoft. – Developers also benefit, they increasingly turn to our help to attract more players and scale their projects using the capabilities of our cloud. This quarter our third-party revenues exceeded $ 2 billion for the first time. “.