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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.

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."
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Software? What year is this? Am I in a time machine?"
Entire online ad revenue for 2007 was $20 billion. Entire industry. MSFT alone as a software publisher had $50 billion in revenue for 2007. That's the point."
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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.