It has been has been close to five months since the release of both the Xbox Series X|S and the PlayStation 5, and yet they are still incredibly hard to obtain. This is due to a widespread shortage in semiconductors, cut now chip scarcity is reaching “crisis” levels, impacting more than just console production
According to The Guardian, the dramatic shift in supply has been “steadily worsening since last year.” Media and tech analyst Neil Campling of Mirabaud, stated the shortage will likely worsen because the supply can’t keep up with demand.
Chips are everything,” Campling said. “There is a perfect storm of supply and demand factors going on here. But basically, there is a new level of demand that can’t be kept up with, everyone is in crisis and it is getting worse.”
The Guardian’s report also described other industries being taking a hit by this shortage. Car manufactures like Ford, General Motors, and Nissan–companies that are spending a great deal on electric vehicles–are projecting a decrease in profits. Microsoft and Sony have both said the supply problems could last until the second half of this year. Apple and semiconductor producer Samsung are also suffering.
This shortage also extends to graphics cards, which are experiencing their own supply and demand issue.
“There is no sign of supply catching up, or demand decreasing, while prices are rising across the chain,” Campling said. “This will cross over to people in the street. Expect cars to cost more, phones to cost more. This year’s iPhone is not going to be cheaper than last year.”
Right alongside the chip shortage are reports of Nintendo releasing a Switch Pro. The new model is said to have a new chip that supports better CPU performance, more memory and DLSS capabilities.
Back in February, President Biden said his administration will launch an investigation into the semiconductor shortage. The executive order is geared towards figuring what went wrong in the chain of production and how it can be repaired.