The Search for Consoles: How Gamers Cope with Global Chip Scarcity

Like many gamers over the past few weeks, Nicole DeSantis, 33, from outside of Philadelphia, has scoured social media sites trying to find the inside scoop on where to get a PlayStation 5 this holiday season. Due to the global shortage of chips, this year’s video game consoles are particularly hard to find.

After finding a unit at Walmart, Nicole even helped more than half a dozen mothers secure consoles for their children. She also posts tips on popular Facebook groups – like “PS5 / XBOX SERIES – RESTOCK”, which has 27,700 members – on how to find them.

“You definitely need knowledge to get a console,” DeSantis told CNN Business. “You can’t just do it without.”

More than a year after their initial releases, Sony’s PlayStation 5 (PS5) and Microsoft’s Xbox, the X Series, are still hard to find. Nintendo’s newest model, released in October, the OLED Switch, is even harder to find on shelves and online.

Devices are depleted in minutes, and an incident in Harris County, Texas, even resulted in an attempted armed robbery when a 19-year-old man tried to sell his PS5 to a man he met online.

Shortages of supplies and logistical problems have affected many industries, including automobiles and consumer electronics, but the gaming industry has been notably hit by competing with these other sectors for similar parts.

“Supply chain issues affecting other consumer items are even more pronounced for game consoles for a few reasons, namely the lack of chips, logistical backups and bots that exploit the supply-demand imbalance,” said the Forrester Alla Valente technology analyst to CNN Business.

Sony even withdrew its forecast of producing 16 million PS5 units between March 2021 and March 2022, adjusting the number to 15 million units. Nintendo and Microsoft warned customers earlier this month that console sales will decline due to a shortage of chips.

“We will do our best to meet demand for all of our products, depending on the current situation and any challenges related to transportation and supply chain management,” a Nintendo spokesperson told CNN Business. “Our goal is to manufacture enough systems to meet demand, so that we can satisfy as many consumers as possible.”

Similarly, a Microsoft spokesman said the Xbox Series X | S will continue to be replenished. “We are working as quickly as possible with our manufacturing and retail partners to streamline production and transport and keep pace with unprecedented demand,” they said. “We recommend checking availability with local retailers.”

But some buyers like DeSantis are actively looking for alternative solutions. For example, Microsoft began offering Xbox Series X bundles in mid-November to “select fans” who received links through their existing Xbox accounts to purchase the bundle, which included the console itself and a game.

Sony implemented a similar practice, where it began sending out special e-mail invitations to refuel the PS5 based on “past PlayStation interests and activities,” according to its website.

Other retailers are offering special access to inventory for shoppers joining their annual subscription services. These include Walmart + ($98), Best Buy Totaltech ($199.99), Costco ($60) and GameStop PowerUp Pro ($14.99).

“Most Walmart+ subscriptions are probably just people trying to get the PS5 and then canceling it after getting it,” said DeSantis.

Still, subscribing to these services does not guarantee that someone will find a console. Bereket Tesfay, 42, of Austin, Texas, is a gamer who cannot locate a PS5, even after paying for subscription services.

“I joined Walmart+, Amazon Prime and GameStop’s Pro to get an early chance of finding some – and after a year, I still don’t have a console,” he told CNN Business. “I’ve never in my life seen a console where, a year after it came out, you couldn’t just walk into a store and buy one.”

Ameer Assaf, 32, of Flushing, Mich., runs three different social media pages to help gamers share tips about product availability. In addition to tweeting updates, he manages a group on product stocks on the Discord messaging app and the “PS5 Restock Updates & Alerts” Facebook group, with more than 60,000 followers.

“A lot of people started playing more video games during the pandemic and were interested in buying or upgrading their existing consoles,” Assaf told CNN Business. “We are effectively seeing a situation where there is incredibly high demand coupled with very low supply. The PS5 shortage was the worst I’ve seen so far.”

He said scalper bots, which are automated systems for purchasing items to resell at a higher price, are also making things more difficult for the average consumer this year.

“I’m particularly excited when parents send me messages that my group was the reason they gave their kids a console this holiday,” Assaf said.

Analysts predict that supply chain issues will affect the gaming industry in 2022 and possibly 2023. Assaf said he will continue to do his best to help connect consumers with a coveted console.

“From now on, [meus] groups will continue to function until scarcity is no longer an issue,” he said.

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