Microsoft expects Xbox Series X/S supply issues to continue until at least June 2021

Microsoft has said it expects Xbox Series X/S supply issues to continue over the coming months.

During the company’s third quarter earnings call on Tuesday, chief financial officer Amy Hood provided an outlook on Microsoft’s gaming business for the fourth quarter ending on June 30, 2021.

“In gaming, we expect revenue growth in the mid to high single digits,” she said.

“Significant demand for the Xbox Series X and S will continue to be constrained by supply.

“And on the strong prior year comparable, we expect Xbox content and services revenue to decline in the mid to high single digits.”

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Hood’s comments are in line with those of Microsoft’s former head of investor relations, Mike Spencer, who said in February that supply of Xbox Series X/S consoles was likely to be constrained at least through June.

AMD, which makes the chips inside Xbox Series X/S and PS5, also said in late January that it expected supply issues through the first half of 2021.

Microsoft reported a surge in quarterly revenue for its gaming business on Tuesday following strong demand for Xbox content, services and hardware.

Boosted by the launch of Xbox Series X/S in November 2020, the division’s third quarter revenue was up 50 percent year-over-year to $3.53 billion.

Xbox content and services revenue increased 34 percent “driven by strength from third-party titles, Xbox Game Pass subscriptions, and first-party titles”.

And Xbox hardware revenue was up 232 percent “driven by continued demand for Xbox Series X/S”.