There are way more factors at play than supply and demand for their own systems.In an ideal market, every system would be equally hard to find as every player perfectly optimizes.
MS could benefit from making more systems, if people get tired of waiting for a PS5, they might figure that some of them will buy a XSX.
Another factor is the supply of chips, it is probably less than the demand of either.
There are a lot of logistic factors at play, and a lot of short term and long term planning factors that we don't even know about.
Current chip manufacturing however is far from ideal so yeah, a lot of things can be at play. If Microsoft over estimated demand or if Microsoft is actively harming Sony by using up supply chains, then anything can happen.
demand doesn't matter?!? lolYes ps5 demand doesn't matter as long as it was predicted and stays consistent. That's not to say the combined demand from every console is less then supply.
someone needs to read about peak oil and apply the concept here. chips are the limiting factor here. if chip manufacuring can't keep up with demand then shortages will continue. its not like sony will just raise prices to $600 to lower demand to match supply...