Demand for video games has surged to unprecedented levels in the era of lockdowns and Covid-19, but finding a new PlayStation 5, Xbox Series X|S and Nintendo Switch is easier said than done. Console manufacturers see no end in sight to global shortages of the cheap but essential chips needed to boost the availability of their coveted gaming machines.
With general-purpose chips for audio, power management and wireless communication functions in short supply in recent months, Japanese electronics makers Sony and Nintendo have made significant downward revisions to their sales targets for the financial year and spoken in stark terms about the turmoil in their operations caused by chip shortages.
“Judging by recent statements and projections made by the top management at Microsoft, Sony and Nintendo, things will continue to look bad at least into the second half of 2022,” said Serkan Toto, founder of Tokyo-based game industry consultancy Kantan Games, who added that semiconductor shortages may only begin to ease in 2023.
Industry analysts say console manufacturers may substitute certain components for readily available alternatives in the months ahead to cope with the supply crunch, and that the release of next-generation hardware, including a rumored more powerful revision of the top-selling Nintendo Switch console, could be held up until supply chain disruptions are resolved.
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Nile Bowie is a journalist and correspondent with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.
