Like many gamers in recent weeks, Nicole DeSantis, 33, from near Philadelphia, scoured social media looking for inside information on where to get a PlayStation 5 this vacation season. Video game consoles are especially hard to come by this year due to the worldwide chip shortage.
After successfully snagging a unit at Walmart.com, she has helped more than a half-dozen local moms buy various video game consoles for their children. She also posts tips on popular Facebook groups – such as “PS5/ XBOX SERIES — RESTOCK”, which has 27,700 members – on how to find them. “You definitely need the information to get a console,” DeSantis told CNN Business. “You can not just get it without it.”
More than a year after their launch, Sony’s PlayStation 5 (PS5) and Microsoft’s high-end console, the Series X, are still hard to find. The recently unveiled OLED model of the Nintendo Switch, which launched in October 2021, is even harder to find on shelves and online. The remaining stocks of the devices have sold out in minutes, and one incident in Harris County, Texas, even led to an armed robbery when a 19-year-old man tried to sell his PS5 to a man he met online.
Supply shortages and logistical issues have affected many industries, including automotive and consumer electronics, but the gaming industry has been particularly hard hit as it competes with these other industries for similar parts.
“The supply chain problems experienced by other consumer products are even more pronounced in gaming consoles for a number of reasons, namely chip shortages, logistics issues and bots that take advantage of the supply-demand imbalance,” Alla Valente, an analyst at Forrester, told CNN Business.
Late last year, Sony (SNY) downgraded its forecast to produce 16 million PS5 units between March 2021 and March 2022 to 15 million units. Both Nintendo (NTDOY) and Microsoft (MSFT) warned customers earlier this month that console sales will decline due to chip shortages.
“We will do our best to meet the demand for all of our products, depending on the current situation and challenges related to shipping and supply chain management,” a Nintendo spokesperson told CNN Business. “Our goal is to make enough systems to meet demand so we can satisfy as many consumers as possible.”
Similarly, a Microsoft spokesperson said the Xbox Series X|S will continue to be stocked up. “We are working with our manufacturing and retail partners as quickly as possible to expedite production and shipping to keep up with unprecedented demand,” it said. “We encourage you to check with your local dealer for availability.
But some buyers, like DeSantis, are actively looking for fallback options. For example, in mid-November, Microsoft began offering Xbox Series X bundles to “select fans” who received links through their existing Xbox accounts to purchase the bundle, which included the console itself and a game. Sony engaged in a similar practice and began sending out special PS5 re-release invitations via email based on “past interests and PlayStation activities,” according to Sony’s website.
Other retailers are offering special access to restocks to buyers who sign up for an annual membership. These include Walmart+ ($98), Best Buy Totaltech ($199.99), Costco ($60) and GameStop PowerUp Pro ($14.99). “The majority of Walmart+ memberships are probably just people trying to get the PS5 and then canceling it after they get it,” DeSantis said.
Still, signing up with these services is no guarantee that someone will find a console. Bereket Tesfay, 42, of Austin, Texas, is one gamer who can not find a PS 5 even though he paid for subscription services.
“I signed up for Walmart+, Amazon Prime and GameStop’s Pro membership so I could have an earlier chance to buy a system – and after a year, I still have not gotten one,” he told CNN Business. “I have never seen a console in my life where you can not just walk into a store and pick one up a year after it comes out.”
Ameer Assaf, 32, of Flushing, Michigan, runs three different social media pages where gamers can share tips on product availability. Not only does he tweet updates from his Twitter page, but he also manages a restock group on the messaging app Discord and his “PS5 Restock Updates & Alerts” group on Facebook 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 have a situation where there is incredibly high demand and very low supply. … The PS5 shortage was the worst I have seen so far.”
He said scalper bots, which quickly buy up items to resell at a higher price, are also making it difficult for the average customer this year. “I am especially happy when parents tell me they can give their child a console this season thanks to my group,” Assaf said.
Analysts predict supply chain issues will affect the gaming industry well into 2022 and possibly into 2023. Assaf said he will continue to do his best to help consumers get a coveted console. “As of now, [my] groups will continue to work until the shortages are no longer an issue,” he said.
