RSSMicrosoft Boosts Xbox 360 Shipments
By Ed Oswald | Published April 28, 2006, 11:51 AM
Microsoft said Thursday it will sacrifice some of its profit margins to continue ramping up shipments of the Xbox 360. The company hopes to get a head start over competing next-generation consoles, especially Sony's PlayStation 3.
However, short-term issues with profitability may end up paying off in the long term. As the company sells more units, it will in turn sell more accessories and games, for which It receives a small licensing fee.
The boost in shipments has also allowed Microsoft to increase its predictions of overall sales for the fiscal year ending June 30. The company now expects to sell 5 to 5.5 million Xbox 360 consoles, up from earlier predictions of 4.5 to 5.5 million.
Supply issues have dogged the Xbox 360 since its launch. Production shortages in January caused the company to scale back its initial shipment goals. However, the addition of a third manufacturer, Celestica, has eased the problems.
Still, Microsoft will not say that the shortages will end. Company executives note that they have yet to reach a point where supply equals demand, because the console remains highly sought after.
The company will continue to spend heavily on manufacturing the Xbox 360 into the fiscal first quarter, and it warned that the move would again cut into profits.
In the third quarter, Microsoft's Home and Entertainment Division, home to the Xbox team, posted a $388 million loss on $1.06 billion in sales. This was double the $175 million loss of the year ago quarter, but revenues for the division were up 85 percent.
And you think Sony won't have production issues or problems? It would be a first for Sony. Are you short minded or just to young to remember the issues with the PS1 and PS2 WOW!
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|I believe when the PS3 finally does launch it will be stripped of it's Blu-Ray drive. There is no way they can sell the PS3 at a reasonable price otherwise. I'm sure our resident Sony fanboy will disagree of course.
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|Seems Microsoft are getting desperate, as PS3 launch becomes closer.
Many sites are reporting that PS3 with retail for $399US or 249Euro.
That's the current XBox360 price (which is rumoured to drop around PS3 launch to $299).
This means for $100 more, you can buy a cutting edge PS3, with Blu-Ray, 60GB HDD and fully HD-Ready, rather than a 18month old non-HD Ready Xbox360.
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|I personally think Xbox 360 rocks although it seems like every game I play was rushed to market. A lot of the features that were in the original xbox versions were stripped out to meet the launch date of the console. Kind of disappointing considering games cost 60 bucks a piece.
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|MS should be scared, the games out for the 360 aren't the best. I really don't see any point in paying 59.99 for a game that looks and plays like a xbox game. PS3 will be a lot more but it will have better playing games and a big difference over the ps2. something i havent seen from 360 to xb1 games.
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|Microsoft sounds alittle scared! They're afraid once the PS3 hits stores no one is gonna glance at the 360, so they are probably hoping to get as many sales out as possible before that happens. But surley M$ isn't worried about Nintendo's little Wii Wii.
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|too little too late, MicroSux.
I have already started looking forward to the PS3 launch.
Make Halo 3 for the 360 then we'll talk...
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|PS3 Laund is tooooo far away and toooo many delays. I will go back to my 360 thankyou very much.
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|Well I'm happy that PS3 is getting Delayed. Atleast that way they can make sure that the console doesn't have any issues like the 360 which was rushed out my microsoft and had alot of issues.
But it's ok, The Playstation will dominate like it has for the past 10 years
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|I have had about 60 friends of mine get the 360, and they say it runs great. They also dumped their P2 for the 360.
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|First part I believed--second part I dispute. Perhaps you mean they are simply playing the XBox 360 more than the PS2...or did they actually DUMP it?
If I had a Playstation 2, or any Sony game system for that matter, I'd do what puts me ahead--sell it!
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|Some sold it on Ebay some gave as gifs, some gave it away as a donation.
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