XBox 360 Shortage May Continue into Spring
Posted by Sean Fallon on January 24, 2006
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Analyists are now saying that the troubles Microsoft has been experiencing regarding the supply of the XBox 360 may continue well into the spring.
Microsoft “needs to get the supply-and-demand situation nailed real soon.” says John Davidson, editorial director for Ziff Davis Media’s video game industry magazines. “If it drags out much longer it’s just going to promote apathy rather than excitement.”
Bill Gates insists that Microsoft is “making them as fast as we possibly can,” - but that will do little to console the thousands of gamers who have been unable to find a 360 in the stores over the past few months.
Frankly, Microsoft’s inability to execute their distribution game plan is indicative of a larger problem than the issue of supply and demand. Richard Doherty, research director of the Envisioneering group believes that the shortage could be the result of a lack of quality 360 units rolling off the production line, or perhaps it is delaying to produce more units with an HD DVD drive, which Gates announced at CES 2006.
Either way, Microsoft really needs to pull it together if it wants to get the leg up on Sony and the highly anticipated release of the PS3 which is expected later this year. Fortunately for Microsoft, rumors have indicated that Sony may have some problems of their own. If the rumors are true, it would represent a perfect opportunity for the XBox 360 to establish market dominance.
Source: USA Today
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[...] The XBox 360 eh? Imagine what the results would have looked like if they were able to keep the stores stocked. [...]
[...] Microsoft is blowing its “first to the market” advantage through their inability to distribute the XBox 360 in a timely manner. With shortages expected to continue into the spring and even the summer, Nintendo may be able to jump in and grab market share if it can beat the PS3. At this point, rumors have put the Revolution release date somewhere between May and November 2006. [...]