The PlayStation 5 and Xbox Series X sold out almost immediately upon launch last week.
Profit margins on the new PS5 and Xbox Series X are probably “thin or even outright in the red,” according to IDC’s research director of gaming Lewis Ward, so it made sense to set production limits.
Niko Partners senior analyst Daniel Ahmad said that he anticipates the PS5 and Xbox Series X will continue to be supply-constrained this holiday season because of the pandemic’s impact on production and logistics.
Microsoft told CNN Business that its new Xbox hardware production wasn’t affected by the pandemic and that it “set out to produce as many new consoles as it could. ” The company added that the consoles, including a cheaper Series S, launched in 40 countries and it “will sell every new Xbox” it is able to produce this year.
“We’re building new Xbox consoles as fast as we can to meet demand,” Microsoft said.