SEATTLE - Microsoft Corp said that it was delaying the launch of its next generation gaming console Xbox 360 in Australia due to supply problems. These same problems forced Redmond to scale down the sales forecasts for the next three months, but the software giant said that it would be selling 4.5 million and 5.5 million consoles by the end of June.
Initial estimates had suggested that Microsoft was looking to sell 2.75 million to 3 million units by end of February, but it had to scale down the figure to 2.5 million units after 1.5 million units were sold in the December period notwithstanding the Christmas demand.
Additionally the huge demand had created supply problems forcing a postponement of the Australian launch, which is now March 23 instead of March 2. "The new launch dates have been set due to the unprecedented global consumer demand stemming from the challenges in ramping supply for a complex product like the Xbox 360,” Redmond said in a statement.
"This is a short term manufacturing challenge and steps have been taken to increase supply to provide adequate supplies at launch." However analysts are now questioning whether Microsoft can indeed reap advantage from being the earliest on the market. Wall Street analysts also say that since Sony is all set to roll out PlayStation 3 by June at the latest, it does not give Microsoft much advantage.
Michael Pachter, an analyst at Wedbush Morgan Securities said as much, "Microsoft's first-mover advantage is eroding if it takes them very long to get the first 5 million boxes out. If 4 million show up in the month of June and Sony launches in the month of June, there's not much of an advantage." For now though users are hoping that Redmond will find a way to fill in the demand.
