Microsoft Abandons 90-Day Target

Microsoft now admits it will not meet its target of up to 3 million Xbox 360 sales within 90-days of the console’s launch. In a report in today’s Financial Times, the company shifted its attention to the longer-term target outlined at CES last week. The firm now says it will hit sales of 4 million to 5.5 million by the end of its financial year, in June.

Analysts believe sales of the console had hit around 1.3 million by the end of the Holiday sales period. But as January moves along, retailers have yet to see evidence of shortages easing. Xbox 360 chief Peter Moore explained, “Nothing’s perfect – you’ve got a complex piece of hardware that includes1,700 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.”

He added. “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 wants to shift focus to the summer, by which time demand should have been met by supply, assuming consumer interest can be maintained. “[Manufacturer] Celestica coming online makes us feel real good about our ability to do 4.5m to 5.5m, and June is important because it’s our fiscal year,” said Moore.

Speaking for publishers, Brian Farrell, chief executive of THQ was phlegmatic. “We love product launches, but not necessarily for what they do in the first three to six months. Inventories have been fairly tight but I don’t think that should have surprised anyone.”

Source Next Generation