“Console manufacturers have the highest demands and we apologize for their frustration,” they add.
Semiconductor shortage resulting from the pandemic has affected all types of industries, from consumer electronics to automotive, with a special emphasis on video games. The coincidence of a new generation of consoles, the unprecedented demand for confinements and the lack of components has led to a shortage of PlayStation 5 and Xbox X Series consoles that, to date, companies are unable to resolve. And component manufacturers are warning that the production will not return to normal within the next year..
In fact, Toshiba warns that its semiconductor production will not be able to cope with demand over the next year, perhaps even until 2023. “Chip supply will remain tight until at least September next year,” says Takeshi Kamebuchi, head of semiconductor production, in remarks shared by Bloomberg. “In some cases we will find customers who will not be fully served until 2023.”
Long-term contracts are piling up on us as if we were newTakeshi Kamebuchi, Toshiba.With the demand for electronic components skyrocketing thanks to the pandemic, Toshiba to invest 60 billion yen (~460 million euros) over the next 3 years to boost its semiconductor production, and even consider opening yet another fab. While investors believe that demand will fall before this investment pays off, the company doesn’t see it that way. “Normally we receive orders weeks or months in advance, but right now we are getting more and more requests half a year ahead or beyond. Long-term contracts are piling up as if we were new at this,” adds Kamebuchi.
The guts of a PlayStation 5
No console manufacturer has complete satisfactionTakeshi Kamebuchi, ToshibaObviously, the company must assess each customer’s situation in order to prioritize some over others, given the shortage of components. And, in the case of the video game industry, Toshiba is apologizing to console manufacturersbecause none of them are satisfied with the production. “The console manufacturers are among the customers with the highest demands and I truly apologize for their frustrationsince none of them has full satisfaction”.
Those of you who follow monthly sales data closely in markets such as the UK will have noticed that the best-selling machine each month depends entirely on which console has the most stock available. Demand continues to far outstrip supply, and while PlayStation, for example, has already secured enough chips for the whole year, its leader Jim Ryan says that’s not enough to cope with demand that outstrips its most ambitious production plans.
