Blimblim said:NB: This is information I got from a contact at MS' marketing, take it as you will
Xbox production has not stopped, or even slowed. The main problem is that MS did not want to open a new production line at the end of 2004 because of the very high (and rather unexpected) demand on Xbox for the christmas season.
So instead of getting more Xbox on the market, MS just redirected lots of the systems planned for Europe to the US in an attempt to get enough systems on the market. It definitely was not enough for the US, and just starved the European (especially UK) markets too.
So now a few months later MS is still producing Xbox at the same rate, but it's still not enough for all retailers to get a big enough stock back.
So it's not about wanting to kill the current Xbox before it's time, it's a problem of not wanting to invest anything more in it. Opening a new production line when you have a new system coming a few months later is a very expansive operation and MS certainly does not want to lose anymore money than they must on the Xbox.
I can't say I agree with MS' choice on this...
Kinda what I was thinking. Its effectively producing less because it won't ramp up production to meet demand. I can understand them not wanting to invest more, but if they hadn't planned to open up more production, why cut the price? Clearly they need to recheck their business projection software a little better.