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AMD feels supply shortages will affect PS5, Xbox Series X, and PC gaming until at least 2H 2021

PS5, Xbox Series, and PC gamers will continue to be impacted until 2H 2021. (Image Source: AMD)
PS5, Xbox Series, and PC gamers will continue to be impacted until 2H 2021. (Image Source: AMD)
Supply shortages for desktop CPUs, GPUs, and game consoles such as the Sony PS5 and Xbox Series X/S are likely to continue up to 2H 2021, according to AMD CEO Dr. Lisa Su. Dr. Su expects gaming hardware and low-cost PCs to have supply issues while higher-margin hardware is more likely to be available at retail.

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AMD managed to set new records in Q4 2020 despite challenges posed by the pandemic and the US-China trade war. However, the ongoing lean period of availability of CPUs and GPUs (and inflated pricing as a consequence) may continue until the end of 1H 2021.

Responding to an investor query, AMD CEO Dr. Lisa Su said, "overall demand exceeded planning" and CPU/GPU shortages will primarily impact gaming hardware and the low-end of the PC market. Gaming products impacted include both consoles and gaming CPUs and GPUs. This will continue until production resumes at full capacity, which may take up to 2H 2021. Dr. Su felt that the higher-margin products are likely to be more readily available at retail.

As per information gained by Tom's Hardware, AMD's inventory has increased to US$1.4 billion in unsold goods. This inventory not only includes fully ready chips but also those in various stages of production and packaging. So, while AMD's increased wafer capacity at TSMC results in more chips, packaging shortages apparently still seem to affect the supply chain.

Ultimately, consoles such as the Sony PlayStation 5 and Microsoft Xbox Series X and Series S are likely to be the most affected of all until 2H 2021. Whatever little stocks are being made available right now tend to be quickly lapped-up by scalpers, who sell them for a high mark-up on sites like eBay.

The situation does not currently look good for gaming CPUs and GPUs such as the new Ryzen 5000 processors, Radeon RX 6000 series, or NVIDIA's Ampere RTX 30 series either. Adding to the supply woes is the fact that global GDDR6 shortage is expected to continue well into February and may be even beyond thus affecting all NVIDIA and AMD GPUs that use this memory standard.

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Vaidyanathan Subramaniam
Vaidyanathan Subramaniam - Managing Editor - 1390 articles published on Notebookcheck since 2012
Though a cell and molecular biologist by training, I have been drawn towards computers from a very young age ever since I got my first PC in 1998. My passion for technology grew quite exponentially with the times, and it has been an incredible experience from being a much solicited source for tech advice and troubleshooting among family and friends to joining Notebookcheck in 2017 as a professional tech journalist. Now, I am a Lead Editor at Notebookcheck covering news and reviews encompassing a wide gamut of the technology landscape for Indian and global audiences. When I am not hunting for the next big story or taking complex measurements for reviews, you can find me unwinding to a nice read, listening to some soulful music, or trying out a new game.
contact me via: @Geeky_Vaidy
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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2021 01 > AMD feels supply shortages will affect PS5, Xbox Series X, and PC gaming until at least 2H 2021
Vaidyanathan Subramaniam, 2021-01-30 (Update: 2021-01-30)