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Glockstar
02-14-2008, 04:11 PM
Microsoft Reports 360 Shortages in America; Retailers 'Really Upset'
Posted by David Radd on Thursday, February 14, 2008

Speaking to Reuters, the global marketing head for Microsoft's games business Jeff Bell commented that Microsoft is seeing shortages for the Xbox 360 in the U.S. This is attributed to demand in the post-holiday period being higher than expected. This echoes remarks made by Shane Kim during the recently concluded D.I.C.E. Summit.

"We are really running short of product here in the United States," said Bell to Reuters. "You could say we misjudged demand."

These comments were strategically made before the NPD would release its January sales results. Bell commented that Microsoft was hoping this would "manage expectations."

"We're literally out of stock in many stores. We think this will have an impact on our sales," added Bell. "It may cause the overall industry number to be down a little bit. Retailers have been really upset, they are on allocation. It is a lag I think we're seeing in January and that may continue into February, then as spring ramps up, we'll be able to meet that demand."

http://www.gamedaily.com/articles/news/microsoft-reports-360-shortages-in-america/?biz=


Hey, didn't TMG say something like this would happen? Something about the more you people b!tch about the 360, and hype up the PS3's future... yeah?

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Side topic: On the GameDaily webpage where that article appears - indeed within the article itself - is a link to the results of an interview between (Microsoft Game Studios VP) Shane Kim and the New York Times. Here's a link here. (http://www.gamedaily.com/articles/news/DICE:-Shane-Kim-Grilled-Over-Xbox-360-Performance/19334) Read it.(!) There's stuff about MGS's internal development (or lack thereof) and Bungie; the 360's life cycle expectations; and Europe... among other things.

Eh, eff it; I know how you people are; some excerpts:
Schiesel then turned to the issue of internal development and how it appears to have deserted Microsoft of late. He pointed to the Activision acquisition of Bizarre Creations, the EA purchase of Mass Effect developer BioWare and Bungie becoming independent. When asked if Microsoft had difficulty hanging on to its talent, Kim responded that some people don't like to be part of a large corporation. But, he noted, some people see the value in that, like Peter Molyneux of Lionhead who doesn't have to worry about the marketing half of things. Kim pointed to the five internal studios they still had as the highest quality before adding, "We can't control the actions of other developers and publishers. For Bungie, they wanted to return to independence and we felt it was better for both of us to support that."

The topic then shifted to Microsoft's main competitors in the gaming field, being asked first about Nintendo's success, and if the 360 ends up number two, will Microsoft count it as a "failure." Kim considered his response and said that there is still "a long way to go," adding that you can't judge success purely by console units sold. He was complimentary of Nintendo's ability to expand the audience of gaming, saying that Microsoft had to emphasize their "E" to "T" family-friendly content out there, not to mention Xbox Live Arcade. Kim added that he expects the Xbox 360 to have a long life cycle, "very different than Xbox 1," though he didn't put forth any particular estimation on lifespan. He then said that the company did so well during the holidays, they even ran into some supply issues for the 360.

As for Microsoft's other main rival, Sony, Kim acknowledged that they are a formidable group, especially with their brand loyalty in Europe. He ventured that it would take a long time to get the same brand equity in Europe, and noted that Sony's reverse in fortunes has been tied with increased output from their first-party studios, something increasingly important in an era of increasing third-party agnosticism.