Supply shortages for both the PlayStation 5 and Xbox Series X, as well as the Xbox Series S and other CPUs and GPUs, will likely continue until the latter half of 2021, technology company AMD warns, citing a shortage of needed chips for the consoles.

The PlayStation 5 and Xbox Series X both utilize custom AMD hardware. The rate at which these chips have been produced has not been able to keep up with demand. AMD CEO Lisa Su addressed the ongoing struggles consumers are having trying to find next-gen consoles during the company’s most recent earnings call on Tuesday.

"The industry does need to increase the overall capacity levels," said Su. "And so we do see some tightness through the first-half of the year, but there's added capacity in the second-half."

Despite this, AMD reported a successful fourth-quarter in 2020, with net income topping $636 million for the period, a notable uptick from Q4 2019’s $383 million. Overall, AMD's CPU, GPU, data center and console sale operations were stronger than ever, particularly thanks to an increase in demand through the release of new consoles and the increased interest in gaming during the COVID-19 pandemic.

While all areas of production at AMD seem to be affected, the company reported a "a strong revenue ramp" at the end of the year, likely boosted by the launch of next-gen consoles in November. The major supply constraints dealt mostly with the PC market.

Since both next-gen consoles launched in last year, the PlayStation 5 and Xbox Series X|S have not been easy to come by. Store shelves have been routinely empty while online retailers continue to sell out shortly after posting additional stock. Online scalper groups have also snagged available consoles, selling them to desperate fans at overpriced rates.

New consoles will stay a rare commodity as 2021 continues on, but knowing that an increase in production on custom chips at AMD will help bring additional supply by the second half of the year could offer some relief.

Photo courtesy of Sony Interactive Inc and Microsoft

More from Venn

JOIN THE VENN
COMMUNITY

Stay up-to-date on upcoming shows, guests and artists

JOIN THE VENN
COMMUNITY

Stay up-to-date on upcoming shows, guests and artists