When the latest generation of consoles hits the shelves, it is always going to cause a lot of buzz. However, this time it has coincided with a shortage of chips. Not enough chips are being manufactured, which obviously means that fewer products are being made with them – and this includes the next-gen consoles. Will these two shortages continue together for the time being? Let’s take a closer look.
Why is There a Chip Shortage?
If you have a piece of electronics, somewhere inside it will be a chip, or semiconductor. From these consoles to our smartphones and household white goods like washing machines and beyond, there are chips in just about everything. However, the manufacturers of these chips are currently unable to keep up with the demand for them. Things have had to slow down considerably across multiple production lines, with even manufacturers like Ford having to limit their output so they don’t cause too much extra strain on a system that is already at max capacity.
Though they are pretty popular items, next-gen consoles can definitely be considered a luxury and not a necessity. Shortages like these will always throw up questions to supply chains. Manufacturers might limit what they are able to ship to console developers like Sony and Microsoft if it means that they can give chips to a company that might make medical equipment or some other necessity.
How This Affects Next-Console Gaming
Though the shortage has been ongoing for some time, it has proven to be very difficult in the run-up to Christmas. Obviously, everyone wants the opportunity to get their hands on a new console either for themselves or for a loved one, and demand has far outstripped supply.
For those who are buying for themselves, there are alternatives that they can follow. From checking out something new, such as NewCasinos, casino site recommended by players, to falling back into an old love on an older generation of game, there is plenty for consumers to check out. Maybe after the Christmas rush is over the demand for consoles will fall off enough for supply to match demand.
The biggest impact will likely be on some of the new releases that are being pushed out. Though some households do already have their next-gen consoles, it is not in the numbers that the manufacturers would necessarily want to see at this point. This could potentially mean that some of the big upcoming game releases are held back. The game production companies obviously want to shift as many units as possible in their first few days. However, if they are not going to be able to meet their distribution goals merely from projections, there is a chance that they will not feel confident pushing their games out.
When Will We See an End to the Shortage?
Many leading experts reckon that the chip shortage itself will come to an end in 2022. The optimists claim that it will be in the first half of the year, but the reality is that it might not be until much later than we anticipate. For this reason, many believe that we might not see an end to the chip shortage until the end of 2022, with production completely normalising in 2023.
However, this does not mean that console production will also bounce back. There is a strong chance that we will instead see a slow trickle as the industry gets started again. After all, when the production lines for chips are strong once more, there are going to be many places where these need to be delivered first. Until production lines for higher priority items like medical equipment and appliances are underway at normal capacity, it is unlikely that we will see many more next-gen consoles being turned out. In addition to this, the demand for them will be so high that it might prove difficult for consumers to acquire one.
The most important thing for such consumers to do is be patient and wait for supplies and prices to return to normal. Scalpers will thrive in this environment, but the high prices that they are pushing will never be worth it. It might take upwards of a year, but the industry will return to normal.
The chip shortage has affected many areas, but it will return to normal with a little patience on the part of consumers. Though it might be difficult to have to sit back and wait for things to even out, the shortage might be over sooner than you might realise, allowing next-gen console gaming to finally get going.