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Xbox Head Phil Spencer Claims Supply Issues Will Continue Deep Into 2022

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Flint 1760
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2021/09/30 17:00:39 (permalink)
ExtremeTech - Xbox Head Phil Spencer Claims Supply Issues Will Continue Deep Into 2022
 
“The word from an increasing number of voices in the semiconductor industry is that shortages and production problems are here to stay for the foreseeable future. Xbox head Phil Hughes is the latest executive to sound off on the problem, and he agrees with assessments from Lisa Su and Jensen Huang:
 
‘I think it’s probably too isolated to talk about it as just a chip problem,’ Hughes told TheWrap. ‘When I think about, what does it mean to get the parts necessary to build a console today, and then get it to the markets where the demand is, there are multiple kind of pinch points in that process. And I think regretfully it’s going to be with us for months and months, definitely through the end of this calendar year and into the next calendar year.’
 
The pinch points are scattered everywhere across the global economy. Earlier this month The Atlantic discussed the supply chain issues in more detail, including the enormous spike in shipping costs. Shipping containers that would have cost $2000 – $5000 to move before the pandemic now run $30,000, with a $20,000 option if you can deal with an uncertain delivery date measured in months.
 
Controlling Delta infections in nations across the world has required the closure of high-volume ports and shipping facilities. This has increased wait times and slowed the distribution of everything from shoes to CPUs. In ordinary times, passenger jets help alleviate some demand by carrying cargo on international domestic flights, but there have been fewer of these flights since the pandemic began.
 
These supply chain problems are exacerbating shortages by disrupting manufacturers’ ability to build hardware at a time when demand has been higher than ever. Toshiba has already given notice that it will not be able to meet demand for certain types of power semiconductor circuitry until 2022, or even 2023.
 
If there’s a consolation prize in all this, it’s that Xbox Series X prices have come down enough on the gray market that they’re no longer an utterly terrible deal. A quick check of eBay’s recently sold auctions shows a reasonable number of systems selling for under $700. The PlayStation 5 is still running hotter, at $700 – $800.
 
Demand is unlikely to drop as we head into the holiday season, so hopefully 2022 will bring better tidings.”
 
My thoughts:  This applies to everything, not just electronics.


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    Ghaschke
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    Re: Xbox Head Phil Spencer Claims Supply Issues Will Continue Deep Into 2022 2021/09/30 22:23:58 (permalink)
    Yeah covid messed up the tech business, really every business. But taiwanese semi conductors shed some hope to all of us
    #2
    moot14
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    Re: Xbox Head Phil Spencer Claims Supply Issues Will Continue Deep Into 2022 2021/10/02 18:22:18 (permalink)
    God, this is sad. I guess I'll be waiting until early 2023 =\
    #3
    donta1979
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    Re: Xbox Head Phil Spencer Claims Supply Issues Will Continue Deep Into 2022 2021/10/05 07:29:27 (permalink)
    yup, just look at the congested ports, look at the fabs and all that is going on there, the shortages because goods are not moving because ships are caught up at those congested ports. Its going to suck... Look at EVGA's Step-Up program there are people that have been in line for a year now...

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    transdogmifier
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    Re: Xbox Head Phil Spencer Claims Supply Issues Will Continue Deep Into 2022 2021/10/05 07:35:38 (permalink)
    because you allowed politicians to push the fear of a virus on the world, this happened.
     
    You allowed yourselves to be controlled ....now you pay the price.

    Sadly I have to pay the price too.
     

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    #5
    Ghaschke
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    Re: Xbox Head Phil Spencer Claims Supply Issues Will Continue Deep Into 2022 2021/10/05 08:34:12 (permalink)
    It costs a lot more to ship stuff now and on top of it all it might just end up getting lost
    #6
    Diijjon
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    Re: Xbox Head Phil Spencer Claims Supply Issues Will Continue Deep Into 2022 2021/10/05 20:40:15 (permalink)
    It's tough out there, man - y'all seen what's going on in Xinjiang? Factories are literally exploding left, right, and center. Silicate factories, microchip processing centers - supply chains in the world's production hub is being absolutely interrupted. This, in addition to Human Rights violations, is disappointing news.
    #7
    Hoggle
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    Re: Xbox Head Phil Spencer Claims Supply Issues Will Continue Deep Into 2022 2021/10/05 23:04:34 (permalink)
    It will be interesting to see if the resellers stick around after the holidays. If they right now are making less then $700 on a $500 item it seems like the margin isn't as good as they might like since we should be in the holiday season for most resellers.

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    #8
    moot14
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    Re: Xbox Head Phil Spencer Claims Supply Issues Will Continue Deep Into 2022 2021/10/07 09:53:12 (permalink)
    Sad to hear. The date people estimate seems to continue to get pushed back. I'm hoping for mid to late 2023 for a new GPU. Maybe at that time we'll be at the 4000 series
    #9
    Dom970
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    Re: Xbox Head Phil Spencer Claims Supply Issues Will Continue Deep Into 2022 2021/10/07 17:25:57 (permalink)
    interesting
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    moot14
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    Re: Xbox Head Phil Spencer Claims Supply Issues Will Continue Deep Into 2022 2021/10/20 20:51:36 (permalink)
    The date always gets pushed back every time there is an update 
    #11
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