Microsoft's Lid Secure on Xbox Supply

December 30th, 2005, 03:12 Posted By: wraggster

Microsoft will likely ship 1.2 million Xbox 360s worldwide -- and just 700,000 to 800,000 in the U.S. -- by the end of the holiday quarter, said Thomas Weisel analyst Tim Klasell in a report issued on Wednesday, which cited media reports and conversations with retailers. In contrast, Klasell had earlier predicted that Microsoft would ship 2 million of the devices by the end of the year.

While the console launched to much fanfare, it is well known that Microsoft's ambitious global launch plans constrained supplies, leaving inventory thin at retail and gamers clamoring for limited shipments, he said in his report.

A Microsoft representative did not return a call seeking comment.

The software giant will still probably hit its target of shipping 2.75 million to 3 million Xbox 360s within 90 days of the device's launch last month, Klasell said, predicting that Microsoft would ship 1.6 million devices in the first quarter of 2006. But the company is likely to ship the bulk of those systems toward the end of the quarter, he said.

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