pcostabel
Gold Member
TheStreet.com
You couldn't miss all the hype surrounding the launch of Microsoft's (MSFT:Nasdaq - commentary - research - Cramer's Take) Xbox 360 video game system last month.
Now if you could only find one.
A new report suggests that Microsoft has shipped far fewer devices than analysts were expecting this holiday season. The report echoes comments from retailers and game companies that they've seen soft sales in part because of supply constraints on the new game system.
Microsoft will likely ship 1.2 million Xbox 360s worldwide -- and just 700,000 to 800,000 in the U.S. -- by the end of the holiday quarter, said Thomas Weisel analyst Tim Klasell in a report issued on Wednesday, which cited media reports and "conversations with retailers." In contrast, Klasell had earlier predicted that Microsoft would ship 2 million of the devices by the end of the year.
"While the console launched to much fanfare, it is well known that Microsoft's ambitious global launch plans constrained supplies, leaving inventory thin at retail and gamers clamoring for limited shipments," he said in his report.
A Microsoft representative did not return a call seeking comment.
The software giant will still probably hit its target of shipping 2.75 million to 3 million Xbox 360s within 90 days of the device's launch last month, Klasell said, predicting that Microsoft would ship 1.6 million devices in the first quarter of 2006. But the company is likely to ship the bulk of those systems toward the end of the quarter, he said.
Such a result could hinder Microsoft's efforts to cut into Sony's (SNE:NYSE - commentary - research - Cramer's Take) position as the leading manufacturer of video-game consoles. Part of Microsoft's strategy was to launch the Xbox 360 well in advance of Sony's upcoming PlayStation 3. But Sony expects to have the PlayStation 3 out next spring, potentially limiting Microsoft's ability to gain a big head start in terms of units shipped.