Phil Spencer Predicts Xbox Supply Won’t Meet Demand This Holiday Season

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Xbox boss Phil Spencer fears the supply chain issues plaguing the Xbox Series X and S may last longer than expected.


Supply chain issues have plagued the video game industry for years. Whether a gamer is struggling to get their hands on a new graphics card or can’t find a new PS5 despite hours of searching, many issues stem from the supply chain. This caused video game console sales to plummet, even with such high demand. Nintendo reported lower hardware sales in its first-quarter financial report, and now Xbox Boss Phil Spencer thinks the green brand may also not be able to meet demand as supply issues persist.

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Speaking to Bloomberg, Spencer gave an update on how Xbox is handling supply chain issues. Spencer confirmed that Xbox is still struggling to meet demand for Xbox Series X and S consoles, and he doesn’t seem too optimistic that the supply situation will improve ahead of the holiday season. “I still think demand will outstrip supply for us this holiday,” Spencer said, but the Xbox Boss remains hopeful the problems won’t last forever.

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Later in his statement, Phil Spencer said he believed the situation would improve in 2023 and players would start to see supply catching up with demand. Spencer even said there’s a chance a gamer will see an Xbox “in the store when [they] come in.” Spencer’s comments about supply chain issues lasting through the end of 2022 align with a June statement from Xbox CFO Tim Stuart, who also expressed his belief that shortages would continue until the end of the year.

That doesn’t mean Xbox Series X and S sales have necessarily suffered. Compared to the PS5, the Xbox Series X has managed to outperform its main competitor on several occasions. While few gamers truly believe in the console wars of 2022, seeing the Xbox Series X beat the PS5 in terms of sales multiple times is still an impressive feat.

It looks like some gamers will have even more reason to choose an Xbox over Sony’s counterpart soon, with PlayStation recently revealing that the price of the PS5 will increase by around 10% in several regions. On the other hand, Xbox said it won’t increase the price of Xbox Series X/S at this time. A Microsoft spokesperson said that while the company is still evaluating its business, the Xbox Series X and S will keep their current prices for now.

MORE: The Nintendo Switch may have a longer console generation than its competitors


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