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Finding facts behind Microsoft's Xbox shortage

by Tom Sanders

22 Dec 2005

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Some evil spirits are suspecting that there is a grander scheme behind the shortage of Microsoft's Xbox 360 systems, but nothing is further from the truth, claims AMR analyst Robert Bois.

In an 'alert' on the AMR website, he deflates the theory that Microsoft is deliberately undersupplying stores – which would serve the console manufacturer as a free marketing campaign as media report on desperate Xbox wanahaves.

Microsoft has made available about 1.1 million Xbox 360 systems in the first four weeks after the launch, AMR's Robert Bois points out.

"Considering the greater complexity of the new-generation consoles, the production rate seems well in line with previous launches, and looks downright spectacular compared to PS2."

Stocking up more of the units would have been unprecedented and a major business risk, he argues. Stockpiling millions of Xbox systems would have Microsoft investing $1.2bn in inventory.

Do you need more of an incentive to make sure that a launch goes right?


Smx4

The occasional smashed Xbox 360 too contributed to the shortage

Tags: microsoft, xbox 360

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