Microsoft Abandons 360 Sale Target

Next Generation is reporting that Microsoft has, reluctantly, admitted they won't hit their 90 day sales target for the Xbox 360. From the article: "In a report in today's Financial Times, the company shifted its attention to the longer-term target outlined at CES last week. The firm now says it will hit sales of 4 million to 5.5 million by the end of its financial year, in June. Analysts believe sales of the console had hit around 1.3 million by the end of the Holiday sales period. But as January moves along, retailers have yet to see evidence of shortages easing."

Comments

I do wonder...

[Fred Or Alive]

If anyone still seriously thinks the Xbox 360 "shortage" is all planned by Microsoft.

The Xbox 360 launch has definatley been a bit of a screw up for them. If only for not getting enough systems into shops. Microsoft's plan was to launch early and try and get a lead on the PS3, but they just can't seem to actually get enough units out...

The most ironical part?

[SharpFang]

The most ironical part? Lower XBox sales mean higher profits at end of financial year for Microsoft.
It will take quite a while till the games start paying back the loss generated by each unit sold. Probably 2 financial years till XBox360 investments break even, maybe 4 for any real profit. Currently the more XBoxes are sold, the more Microsoft loses, at least short-term. Bigger sales = bigger losses.