Xbox CEO Asha Sharma stated that demand for Xbox Series X/S consoles continues to outstrip supply, a challenge that persists even years into the current generation. Speaking during a recent earnings call, Sharma acknowledged that the company is striving to get more consoles into the hands of players.
To address this, Microsoft is expanding its refurbishment program as a means to bolster the available stock, particularly in anticipation of the 2026 holiday season and the launch of major titles like Grand Theft Auto 6. This initiative aligns with a strategy of encouraging active player engagement on the platform. Emails have been sent to inactive Xbox owners, prompting them to trade in their consoles for deals at retailers like Best Buy. While Microsoft may not profit directly from these used console sales, it ensures that more machines are in active use, which drives future revenue through game and service purchases.
However, there has been some skepticism regarding the extent of these supply constraints, especially in major markets like the U.S. where consoles are often available through online retailers and Microsoft's own website. Difficulty in finding stock on store shelves does not necessarily equate to a genuine scarcity for those determined to purchase an Xbox in the U.S.
The global hardware shortage is reportedly influenced by an AI-driven RAM crisis, a situation expected to worsen heading into 2027. Looking ahead, Xbox faces the challenge of navigating these supply issues for its next-generation hardware, codenamed Project Helix, which is anticipated around the holiday 2028 period. Concerns also persist about the potential cost of future consoles, with reports suggesting a price range of $1,200 to $1,800 if not significantly subsidized by Microsoft.