Matthew Ball Says Xbox Cannot Keep up With Console Demand

Speaking at Summer Game Fest’s Xbox Games Showcase, chief strategy officer Matthew Ball made a claim that raised eyebrows across the industry. He stated, "Demand for our console exceeds supply. We are producing them as quickly as possible. There is a severe limitation to how quickly we can do that, but it's not a question of appetite. That is a privilege as a company. It is a challenge for us to figure out."

It is a statement, and it deserves a second look. Hardware has become significantly more expensive to produce since 2025, which might be the real reason behind Xbox’s supply struggles instead of stellar sales figures. As it stands, the Xbox is struggling to compete with PlayStation 5 and Nintendo Switch 2. 

What the Xbox Sales Numbers Actually Say

The Xbox Series X|S has sold 28.3M units over five years, which makes it the third best-selling Xbox console in the platform's history. In context, it is significantly behind the PlayStation 5, which has moved well over 60M units across the same period. 

Ball's supply comment is easier to understand if you set aside the framing of exceptional demand and focus instead on the production side of the equation, which is where the RAM crisis he has spoken about repeatedly becomes relevant. Hardware has become significantly more expensive to produce over the past 18 months. 

Ball himself acknowledged at The Game Business Live that the RAM situation is worse than he let on in February 2026 and could affect the business for the next two and a half years. In other words, Xbox may genuinely be experiencing a situation where the units it is producing are selling through at retail without significant surplus, which is technically a supply-demand imbalance. There is a difference between a product flying off shelves because everyone wants it and a product selling through because not many were made and the ones that were cost more to produce.

Ball's comments come at a moment when Xbox has genuine momentum from a showcase that was widely received as its strongest in years. Gears of War: E-Day, Fable, Halo: Campaign Evolved, and a renewed commitment to console exclusives gave the platform something it has been missing: a clear reason to exist. 

The supply claim, whether technically defensible or not, introduces unnecessary noise into a week that Xbox largely won on the strength of its announcements. The more credible story right now is the games, not the inventory. Xbox would probably be better served by letting the former speak for itself.