Microsoft has conceded defeat in its battle to ship three million hardware units within the first three months on sale, as detailed in a report in yesterday's Financial Times.
Xbox 360 chief Peter Moore explained, "Nothing's perfect - you've got a complex piece of hardware that includes 1,700 different parts. Every now and again the line will slow down because something's happened and there'll be a component that didn't make it that morning. That's just the way of the beast, particularly when you are ramping up factories from ground zero all the way up to full capacity."
Microsoft has offered revised targets, likely in an attempt to appease publishers unable to fill their own sales projections, of sales of between 4 and 5.5 million units in time for its year end in June.
In the meantime the shortage of Xbox 360 hardware is unlikely to ease, with only a small number of units trickling through to retail stores in the US and Europe. Reports suggest that, aside from Japan, Canada has the healthiest reserves at time of press.
Current estimates put Microsoft at around 1.4 million hardware units shipped between launch and the beginning of January, not a bad figure by any means, but still way short of the potential sales afforded to the new console by rampant demand in the western world.
The potential threat Microsoft now faces is opening the door for Sony – early sales were essential – first-mover advantage was something the Redmond software giant touted to press, analysts and publishing partners as being one of the key elements that would make the 360 the dominant force in gaming.
The most serious problem facing Microsoft right now is a simple lack of time. Every day 360 hardware isn't on shelves is another day consumers retain a console-purchasing amount of cash. Every day the Xbox 360 gets older, loses its mystery, becomes another console. And every day is a day closer to these elements combining in Sony's favour. A demand for hardware and a demand for something new combined with readily available cash and a devastating Sony marketing campaign will no doubt see more and more consumers willing to wait and see what the PlayStation 3 has to offer.
Microsoft has a great console and enjoys a great level of demand for it. It has loyal fans and a strong brand. The only thing it seems not to have is time.
Xbox 360 chief Peter Moore explained, "Nothing's perfect - you've got a complex piece of hardware that includes 1,700 different parts. Every now and again the line will slow down because something's happened and there'll be a component that didn't make it that morning. That's just the way of the beast, particularly when you are ramping up factories from ground zero all the way up to full capacity."
Microsoft has offered revised targets, likely in an attempt to appease publishers unable to fill their own sales projections, of sales of between 4 and 5.5 million units in time for its year end in June.
In the meantime the shortage of Xbox 360 hardware is unlikely to ease, with only a small number of units trickling through to retail stores in the US and Europe. Reports suggest that, aside from Japan, Canada has the healthiest reserves at time of press.
Current estimates put Microsoft at around 1.4 million hardware units shipped between launch and the beginning of January, not a bad figure by any means, but still way short of the potential sales afforded to the new console by rampant demand in the western world.
The potential threat Microsoft now faces is opening the door for Sony – early sales were essential – first-mover advantage was something the Redmond software giant touted to press, analysts and publishing partners as being one of the key elements that would make the 360 the dominant force in gaming.
The most serious problem facing Microsoft right now is a simple lack of time. Every day 360 hardware isn't on shelves is another day consumers retain a console-purchasing amount of cash. Every day the Xbox 360 gets older, loses its mystery, becomes another console. And every day is a day closer to these elements combining in Sony's favour. A demand for hardware and a demand for something new combined with readily available cash and a devastating Sony marketing campaign will no doubt see more and more consumers willing to wait and see what the PlayStation 3 has to offer.
Microsoft has a great console and enjoys a great level of demand for it. It has loyal fans and a strong brand. The only thing it seems not to have is time.
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Comments
ryohazuki-san 10 Jan 2006 13:42
1/5
Aaaawwwwww, what a shame.
OptimusP 10 Jan 2006 22:00
2/5
So, in short... they f**ked themselves up by being to stubborn to delay the launch afraid they would lose their face but instead they lose their face in a even bigger way because this shortage does a lot more damage in the long-run then delaying the launch a month or 2.
1.4 million worldwide is pathetic for a six week new console, that's the number of DS's Nintendo sold in Japan in the month december.
1.4 million worldwide is pathetic for a six week new console, that's the number of DS's Nintendo sold in Japan in the month december.
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thane_jaw 11 Jan 2006 02:58
3/5
Their worldwide launch was ambitious full stop. 1.4 consoles isn't bad if that's all they've manufactured. Admittedly its quite poor considering the high demand. However I'd rather they came out bullish, like they have done, and attempt to satisfy all regions (and limit stock, although I really can't understand why they thought Japan would suddenly roll over and buy the 360. perhaps they should have cut back on that region's quota) rather then us europeans having to wait until mid/late 2006 before we got a look in.
Having said that the shortages of 360's has made me question whether to turn in my preorder for a refund.
BustyKrusty 11 Jan 2006 04:08
4/5
Hehe, i'm sure they have boatloads of X360 ready by now only waiting for Sony to give the magic date, with one or two killer ap and a price drop so it can tear our hearts in half(1/3 more precisely).
Perhaps its the day when fanboys born and die...so I'll just be on drugs.
Perhaps its the day when fanboys born and die...so I'll just be on drugs.
charming_fox 11 Jan 2006 11:20
5/5
thane_jaw wrote:
1.4 consoles isn't bad if that's all they've manufactured
1.4 consoles is probably how many they've sold in Japan.