In a recent investor call hosted by financial services company Baird (as reported by Gi.biz), Stuart claimed “that the supply chain environment could remain rocky through 2022 and the holiday season.”
The supply chain is impacted by recent lockdowns in China, he added.
Stuart said multiple issues are facing the supply chain. These include part shortages, which reportedly “favour Series S consoles”, and “elevated logistics pricing pressuring margins.”
Looking ahead to the current quarter ending in June, Microsoft CFO Amy Hood said: “In gaming, we expect revenue to decline in the mid to high single digits driven by lower engagement hours year-over-year as well as constrained console supply.”
“We expect Xbox content and services revenue to decline mid-single digits though engagement hours are expected to remain higher than pre-pandemic levels.”
Nintendo’s president said in May that the global chip shortage would continue to hamper Switch production efforts for the foreseeable future.
“There’s no end in sight to the semiconductor shortage at this point,” Shuntaro Furukawa said.
Xbox CFO Tim Stuart has reportedly claimed that supply chain issues affecting the games console market are likely to continue throughout the end of 2022.