Phil Spencer talks about the current production state for Xbox. Demand is still incredibly strong while supply is strengthening.
Xbox consoles are still flying off store shelves.
So there might be some difficulties still this holiday season when venturing out to find a new console platform. With that said, it doesn’t look like the supply chain is to blame as much as it is with consumer demand for Xbox. The head of Xbox, Phil Spencer, recently spoke with The Verge about the question of supply chain shortages. According to Phil, there is a massive demand right now for Xbox consoles. Phil noted that if you go back to the past generation Xbox console platform releases, you’ll find that they are selling more consoles with this generation than ever before.
We are seeing supply strengthen for us, and demand has not really weakened. All along, while we focused a lot on the supply chain during those first two years of the console generation for us, demand has never been higher for us on Xbox.
Here is the fully section of the supply demand interview with Phil Spencer
We have heard that the chip shortage is actually slowing down, especially in GPUs — GPU supply is there. Is that true for you as well? Is that what you’re experiencing as you try to have inventory for the holiday season?
We are seeing supply strengthen for us, and demand has not really weakened. All along, while we focused a lot on the supply chain during those first two years of the console generation for us, demand has never been higher for us on Xbox. If we go back to the original Xbox, Xbox 360 and Xbox One, we’re selling more consoles than we have ever sold at this point in a generation.
A lot of the discussion, because of COVID-19 and other things, has been on global supply chain and supply. Clearly, if we had more supply, we could meet more demand. I would say our stock situation has been driven as much by demand as it has been supply. That demand doesn’t really seem to be slowing down much. The fact that we’re starting to see more supply come in is why I said you’re still going to see X vacate the shelves pretty quickly. We are definitely seeing supply ease up. I suspect as we get into 2023, touch wood, you will see consoles on the shelf when you walk in the store.
Looks like demand is booming and Phil and Xbox are expecting both Xbox Series consoles to sell out during the holiday season, the X more so than the S.
He confirms that when comparing to Xbox, 360, and ONE, that they have never sold more consoles at this point in a generation, so the Xbox Series consoles are still the fastest selling and best selling Xbox consoles aligned.
Checking with retailers Phil said that he sees that demand is still going strong and that there hasn't been any decrease, even as supply has been increasing as we saw over the summer and fall.
This Black Friday and holiday season in general is going to be very interesting to say the least.