Microsoft has admitted to a shortage in the US of Xbox 360s throughout January, saying that it underestimated post-holiday demand - a fact that has not gone down well with retailers.
"We are really running short of product here in the United States", confessed Jeff Bell
†, head of global marketing for Microsoft's games business. "You could say we misjudged demand."
He said this the day before NPD is expected to release its US sales figures for January. This is no coincidence - Microsoft sought to "manage expectations."
"We're literally out of stock in many stores. We think this will have an impact on our sales", Bell went on. "It may cause the overall industry number to be down a little bit."
Stores, Bell admitted, are not best pleased. "Retailers have been really upset, they are on allocation. It is a lag I think we're seeing in January and that may continue into February, then as Spring ramps up, we'll be able to meet that demand."
Don Mattrick, Microsoft's senior VP of Interactive Entertainment, said of shortages in a Major Nelson podcast, "That's a great problem to have, we're addressing that in the coming year - it's going to take us a little bit of time to amp up our manufacturing, but we're really encouraged that people purchased as many games and as many boxes as they did on our platform - we think that bodes well for the future."
Mattrick succeeded in creating an
uproar during the podcast, making comments that were (incorrectly) interpreted by many to mean that online multiplayer support for
GTA IV was unique to the 360.
Source: Reuters