As people spend more time at home during the pandemic, overall demand for gaming hardware and PC gaming hardware has been high in recent quarters. However, because hardware manufacturers cannot meet all the demands for their products, a large part of consumer spending goes to distributors. Jon Pedy ResearchAfter learning from their mistakes, hardware manufacturers are adopting new business strategies to improve supply.
One of the reasons why PC hardware manufacturers cannot provide enough equipment to meet demand is because they are cautious about production capacity and inventory, and operate with just-in-time (JIT) capabilities. The unusually high price of PC gaming hardware is completely detrimental to manufacturers, as many consumers delay their purchases, others abandon the platform, and sometimes delay new entrants.
JPR analysts said that in order to meet demand for their products and avoid sharp price increases, manufacturers are adopting new business strategies in terms of production capacity and inventory levels.
Ted Pollak, senior analyst in the game technology industry at JPR, said: “PC gaming hardware companies are reviewing their real-time strategies and are beginning to adopt real-time inventory levels.” “As a result, we expect high-end product inventory and sales to increase significantly in the next few years. In addition, ultra-wide monitors and 4K+ monitors can now be purchased in large stores and online at the lowest prices in history. This will help drive the demand for CPU and GPU, as well as the sale of full versions and accessories to gamers.”
Jon Peddie Research predicts that although not all needs can be met and will not be met for a period of time, PC gaming hardware sales will increase from 21 billion to 22 billion U.S. dollars in 2020 to 32 billion in 2021 To 33 billion U.S. dollars.To a large extent, this increase can be explained as Graphics card prices skyrocketed In recent months.
JPR head Jon Peddie said that strong but not unusually high demand for high-end products may encourage manufacturers to “actively reserve high-end inventory levels” to meet demand and prevent price spikes. Since CPU and GPU developers no longer update their product lineups twice a year, and usually do not lower their suggested retail prices, the risk seems manageable for component manufacturers and distributors with expensive hardware , So if they want to prevent the situation that has occurred in recent months, analysts believe that they are likely to be able to do so.