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Data: Microsoft's Xbox 360 shortage claim

Microsoft last week blamed lingering Xbox 360 shortages in February for its second straight third-place finish in the NPD Group's monthly U.S. console sales data. The company is hoping to head off any suggestion that the Xbox 360 is losing steam in its competition against Sony's PlayStation 3. Microsoft says the shortages were caused by higher-than-expected Xbox 360 sales over the holidays. To help assess that claim, here's a comparison of Xbox 360 sales during the 2006 and 2007 holidays.

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As the numbers show, Xbox 360 unit sales were nearly 24 percent higher during the recent holidays, compared with the same period a year before. That would appear to support the company's assertions.

Some in the industry are still skeptical about the way this has played out. There have been reports of some Xbox 360 models being out of stock in some stores. But have the shortages alone been enough to change the sales standings? It's worth noting that the situation wasn't severe enough to garner widespread attention until Microsoft itself went public with word of shortages the day before the NPD Group released its data for January, the first month in which the PS3 was ahead of the Xbox 360.

The timing "was a little suspicious," said Michael Pachter, an analyst with Wedbush Morgan Securities, via phone today. Normally, he said, he would have expected the company to talk about the shortages sooner.

Time will tell if the change in the monthly standings is temporary or more lasting. The Xbox 360, which launched a year ahead of the Wii and PS3, still has the overall lead in cumulative U.S. unit sales -- 9.6 million, compared with 8.1 million for the Wii, and 3.8 million for the PS3.

Microsoft's focus now is on making sure that Xbox 360 is in strong supply in advance of the "Grand Theft Auto IV" launch next month, said Aaron Greenberg, Xbox 360 group product manager, in an interview last week. He said the company is "pulling out all stops to make sure that happens." Among other things, he said, Microsoft is making plans to send some consoles from the manufacturing plants via air, rather than boat.

"Right now, you can go into retail and find an Xbox (360) pretty much everywhere, today," Greenberg said. "But we don't consider ourselves fully in stock today because there are retailers who want to buy more consoles from us, and we're unable to supply that."

Posted by at March 17, 2008 3:55 p.m.
Category:
Comments
#109029

Posted by unregistered user at 3/17/08 10:35 p.m.

I wrote something bad about 360 now my post got taken off stupid fanboy mods on this site.

#109055

Posted by unregistered user at 3/18/08 5:02 a.m.

Xbox 360 sucks is the worst investment you can make it has a %33 failure rate has only FPS games nothing else it has no next gen movie drive no media card slot wifi adapter is $1oo and Xbox 360 have nothing for 2008 well only Gears of War 2 don't buy the crapbox you will regret it. Xbox 360 over heats has Red Light of Death and scratches your disc wow what a crappy console.

The PLAYSTATION 3 the best investment because you get the next gen movie drive Blu-ray at no extra cost and PS3 has no failure rate made %100 high quality. It can also read every media card and is free to play online and has a million exclusive that will make any gamer kil just to get it. If you want real high quality technology that works and also if you want great exclusives not just FPS like Xbox 360 you get a PS3. Sony makes their own game Microsoft can't make games that's why they buy them off Sony has everything secure for their customers.

#109073

Posted by unregistered user at 3/18/08 7:15 a.m.

360 rocks

#109086

Posted by number.61 at 3/18/08 8:03 a.m.

Wow you couldn't be more inaccurate with your comments . . . The 360 is a fantastic gaming experience even with their high failure rate. But keep in mind this failure rate are with launch consoles as well as the first gen consoles. If you go out and buy a 2007/2008 manufactured 360 you are less likely to have issues.

The 360 has the largest next-gen library, it's not just a First Person Shooter machine. They have a nice range of all genres.

The Playstation 3 is not 100% and lack the games that will bring it to the front. Microsoft has no issues securing exclusives for their console and Sony is having all the problems keeping games just for the PS3. Look at Final Fantasy, Devil May Cry. The exclusives they do have are lack luster, Resistance was meh, Heavenly Sword was a huge dissappointment, GT probably will never get done. The only shinning light they have is Metal Gear Solid.

#109089

Posted by unregistered user at 3/18/08 8:19 a.m.

I'm in NJ and I had difficulty finding an Xbox 360 Elite after Christmas 2007. Immediately after Christmas and throughout January I actively searched Best Buy, Circuit City, Target, EB and Gamestop stores in my area without success. A couple Best Buys had the Arcade pack and only one BB had a Pro unit. Everyone seemed to have the Halo 360 SKU. A Pro SKU could be found here and there, but not with any regularity.

Finally a Gamestop employee gave me a tip on a new Gamestop opening the following week and said they were supposed to have a few Elite units.

I stood in line with several others (mostly folks who were there for the handful of Wii's that would also be available) and finally made my Elite purchase. This was early February. For the rest of February I kept an eye out on Xbox 360 restocking. The Elite shortage continued in my area and although Pros were a bit easier to find, it was usually a situation of "we got one in."

Anecdotal, of course, but it was my experience so I tend to think that there was some level of shortage and it did have some level of impact on sales. I certainly would have purchased in January had one been available.

#109162

Posted by 8bitjoystick at 3/18/08 12:32 p.m.

Taiwanese manufacturer Asustek (aka Asus) just announced a deal to product Xbox 360 system and they claim that they can knock out 500,000 million a month. I suspect that this might have to do with the switch to the Jasper motherboard. This might explain the reasons behind the previous production problems or it might be a result of the Xbox 360 production issues.

Asustek to produce Xbox 360
http://www.evertiq.com/news/read.do?news=10555&cat=1

#109166

Posted by 8bitjoystick at 3/18/08 12:36 p.m.

I mean 500k a month.

#109200

Posted by unregistered user at 3/18/08 2:25 p.m.

Has anyone ever found out if and how the enormous amount of repairs and replacements associated with the first run of the consoles play with the numbers they give?

I know that eventually most of the warranty returns will be dumped back out on the consumers as refurb warranty replacements, but does the number of replacements play into the numbers at all?

If the lady at the Staples store can tell by the size of the package as you are walking in to drop it off, that it is an xbox before she even sees the label, it is huge. The international shipping dept fedex guy on the phone last night said he handles approx 40 xbox package calls a day concerning next day air shipments going to and from the texas repair facility and the repair factory in mexico.
Microsoft will not overnight you an empty box unless it is your 3rd or higher failure of a console.

I mean this is no small failure event and almost any company other than microsoft would have probably declared chapt 11 or closed it doors by now. Thank God MS has deep pockets and stood up and is trying to keep people playing games (although they should quit handing out first run refurbs that fail anyway)
http://xbox360rrod.com

Surely this has to impact the suppply chain.

#109223

Posted by unregistered user at 3/18/08 3:47 p.m.

Number.61 Are you being serious? Gt is coming out next month and already has over a millon pre-order, and seconded ps3 is geting all those exclusives like Haze and FF13 and MGS4 are staying ps3 only they are gaining more games as devepolvers use the ps3 more. The xbox still has a 20% fail rate if you by the new versions in 2007-2008 and to let you know thats horrible. Also it seems has xbox is having trouble holding on to their games as mass effect seems to be eyeing the ps3 market and bioshock 2 aswell.

#109244

Posted by unregistered user at 3/18/08 4:53 p.m.

Wow talk about your uninformed, illiterate sony fanboys!! This HAS to be some kid out there with no real grasp of reality. Whoever you are, number.61 is totally right so why ask if he (or she) is serious? Yes we are all aware of the failure rate of the 360, but it's nowhere near the 20-33% you claim it to be. Check those facts buddy, and as it has already been said before, if you get a 360 made in 2007/2008 there is a much smaller chance of anything going wrong. Now for those wonderful exclusive sony games... where are they?!? Haze will be a meager crappy game, GT prologue is SCHEDULED to come out next month... wanna bet that it will be delayed? so what does that leave... MG4 (oooh ONE WHOLE game) and FFXIII which won't come out till 2009/2010. THEY HAVE NOTHING ELSE!!! And whatever little fantasy world you live in that thinks Mass Effect 2 and Bioshock 2 will be out for the PS3 is going to be really upset! The developers of both games have already OFFICIALLY said NO mass effect 2 for PS3 (timed exclusivity reffers to a PC version, not console)and NO BIOSHOCK 2 for the PS3 in the forseeable future. IF (and that's a huge IF) Bioshock is released for the PS, it won't be untill 2010 or 2011. Can you say "sloppy seconds?"

#109254

Posted by unregistered user at 3/18/08 5:03 p.m.

And just so that it known, I have no particular allegiance to either sony or MS, I own BOTH consoles. I just prefer the one that actually HAS a variety of GAMES that are worth the time, and money invested in them to play on. As far as my PS3 purchase goes... I'm pretty happy with my "blue ray player". Now if only it could get some REAL games to play, and none of those crappy, overhyped 5-8 hour games! (I'm lookin @ YOU uncharted and Heavenly Sword)

#109341

Posted by unregistered user at 3/18/08 6:37 p.m.

like gears very short ond overhype and so is halo 3 and also bioshock this site is a freakin xbot site

#109342

Posted by unregistered user at 3/18/08 6:38 p.m.

and todd u an ugly guy

#109343

Posted by unregistered user at 3/18/08 6:40 p.m.

I can't even afford to buy all the xbox 360 games I want to. Never in any gaming console history has this been the case for me. xbox 360 has an incredible selection of games from FPS to sports, flight simulators, racing. Man I can't believe all the complaints about the xbox 360. You know playstation 3 is a great value for being a blue ray player but there aren't any games that I'm dying to go out of my way to invest in the system. I want games and xbox 360 has delivered. Falure rates suck but mine failed and they returned it fixed or a new one within 9 days. I can live with that. 3 year warranty. Cool. Games Cool. Xbox Live. Cool.

#109360

Posted by unregistered user at 3/18/08 7:37 p.m.

hmm... Actually the 360 has quite a long way to go yet before it gets the library size of the ps2... One thing to note is most of the games out really all suck for all the systems... They mostly have a one time play value outside of online play because online play gives the only variance.. Even the online play sucks. So in order to overcome that fix when the next game comes out you rush and get that.. The xbox360 has been out almost twice as long as the other consoles, and still doesn't cover really any more shelf space in stores than the other two systems.. Basically None of the systems produce games with shelf life(that is why they all share fairly equal space) The few with shelf life are due to die hard fanboys and include your only consistent sellers being games like halo3 mario galaxy, Super smash brothers brawl, and the upcomming mgs4 will probably go the same route. To give someone some credit the Wii at least acknowledged the need to actually make a major enhancement to gameplay. The EyeToy for the Ps3 has hope but isn't being marketed. The basic controller has been around since pacman... you would thing that after this many generations of gaming we would be past the joysticks and buttons... Too much emphasis on graphics and processing power. who wants the same old redundant crap? its nice that you can make it look nicer by putting a few bows on it, but crap is still crap... Accomplishments are amazing... gee you know super mario brothers had something like that... it was called a score.... Lets get something new instead of just trying to dress up the crap that is already out there. I think all 3 systems need to try to make something different instead of all trying to mimic eachother.. Competition drives ingenuity.. So be glad there are 3 and not one...

#109422

Posted by unregistered user at 3/19/08 3:43 a.m.

I see Microsoft is making deal with ASUStek Sony's supplier for PS3 and they want to incorporate a Blu-ray drive wow. Sony has way better exclusives than Microsoft will ever have Gears of War 2 %10 game %90 hype by Microsoft. Who ever believes Microsoft is making profit from the Xbox 360 is an idiot they losing more than gaining just the original Xbox loss them 4 billion wow and the Xbox 360 1 Billion for having a rush console with terrible hardware. And now every Xbox 360 owner is drooling over all this games.
Metal Gear Solid 4: Guns of the Patriots
Gran Turismo: Prolouge
Resistance 2: Rise of Man
Killzone 2
Haze
Uncharted: Drake's Fortune
Heavenly Sword
Ratchet & Clan Future: Tools of Destruction
SOCOM: U.S. Navy SEALs Confrontation
inFamous
God of War III
Final Fantasy XIII
Warhwak
Unreal Tournament III
Metal Gear Online
LittleBigPlanet
MotorStorm 2
and many more most of them are made by SCEA, Microsoft doesn't make shit not talented enough only FPS crap from other companies that they gotta pay huge money or die. PLAYSTATION 3 will prove so many facts this year by making Microsoft drop out like Sega because of the PlayStation 2.

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