Nvidia forecasts that the chip shortage for the game segment may last until the end of this year, despite market demand remaining high. The information was released at the company's business results announcement meeting for the last quarter of fiscal year 2025 (ending in January).
Nvidia's Chief Financial Officer Colette Kress said that supply is still very limited and shortages may continue in the current quarter as well as the following quarters.
Although we want more supply, the situation will still be scarce in the next few quarters. If it improves by the end of the year, then we can clearly assess growth compared to the same period," Ms. Kress said.
According to Nvidia, the demand for graphics chips for PC games is still strong, but pressure from the global supply chain makes it difficult for the company to meet sufficient output.
In the context of the technology industry accelerating investment in artificial intelligence (AI), many manufacturers are prioritizing components for data center chip lines with higher profit margins, reducing supply to the consumer market.
Nvidia chips are now widely used in PC games and on Nintendo Switch consoles.
Meanwhile, consoles such as Sony's PlayStation 5 and Microsoft's Xbox Series X mainly use hardware from AMD. The lack of components not only affects the discrete graphics card but also affects the entire console ecosystem.
The console market outlook this year is assessed as less positive. According to market research firm TrendForce, global game console sales are expected to decrease by 4.4% this year, higher than the previous forecast of 3.5%.
Analysts believe that when consumer demand weakens and the supply chain has not fully recovered, the game industry may continue to face many challenges.
In the short term, Nvidia said its priority is still to optimize production and supply distribution, but significant improvements may have to wait until the end of the year.
