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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.

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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> 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)
Vaidyanathan Subramaniam
Vaidyanathan Subramaniam - News Editor - 1286 articles published on Notebookcheck since 2012
I am a cell and molecular biologist and computers have been an integral part of my life ever since I laid my hands on my first PC which was based on an Intel Celeron 266 MHz processor, 16 MB RAM and a modest 2 GB hard disk. Since then, I’ve seen my passion for technology evolve with the times. From traditional floppy based storage and running DOS commands for every other task, to the connected cloud and shared social experiences we take for granted today, I consider myself fortunate to have witnessed a sea change in the technology landscape. I honestly feel that the best is yet to come, when things like AI and cloud computing mature further. When I am not out finding the next big cure for cancer, I read and write about a lot of technology related stuff or go about ripping and re-assembling PCs and laptops.