July 5, 2007 2:44 PM PDT
Xbox 360 shipments fail to reach target
Microsoft acknowledged on Thursday that, in addition to experiencing an
The company had said it would sell 12 million of the consoles by June 30. Instead, it has shipped a total of 11.6 million units, Chief Financial Officer Chris Liddell said on a conference call
"That is slightly shy" of its projections, Liddell said, but added "we're happy with that number."
Earlier Thursday, Microsoft said it was extending the warranty on the console to three years for certain hardware failures, a move that is prompting a $1 billion charge.
During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina. 
mean, I would rather take a 360 over a PS3 any day, and a Wii over
both too. At least it's selling and has good games worth playing.
They can count that as a sale for themselves while the unit sits on
a channel's shelf still unsold to an end user. That's why you see a
glut of 360s all over the sales floors.
And STILL they can't hit their target! What a sad company.
My guess is that this XMAS Sony will hit rock bottom. Price cuts in the 360 combined with added offers and HALO 3 (maybe) will pretty much knock it out of play.
Sony is seriously behind now in the production cycle. They will have to reinvent their games division if they want to stay in the console business.
It is stunning that a company as powerful and rich as Microsoft does not wake up and say gee maybe quality is more important to our users than some type of warranty extention. Psst, what about reputation.
People want quality game consols that are simply correctly, and well designed to FUNCTION (and it is not fun returning an XBOX because the hardware is rotten).
People also would like a built-in HD-DVD at no extra charge. You Microsoft guys got that, right?
Well, at least there are competitors (Wii) that cost much less that are trouncing these guys (Sony too) in sales! I am a Microsoft fan but Microsoft has no excuses here and needs to care about providing better quality.
The console was launched November of last year and stores are still out of stock.
I hope they resolve their supply problems before Christmas.
Consider this:
The XBOX project is a perennial money loser.
The Wii is eating its lunch(and sonys).
Shipments are "slightly off"(400,000 is slightly?).
They have to sink another billion dollars(at least) due to incompetence(big surprise here).
Yet they claim that they are happy?
I doubt this will fool even the most idiotic MS fanboy.
notorious for stuffing the distro channels.....
i bet they are a LOT more than 400K off their target.
- Yes it is slightly
- by amadeus8608 July 8, 2007 3:09 PM PDT
- Compared to TWELVE MILLIONS 400k is slightly. It is very easy to criticize, but I think Microsoft is doing its job about the XBOX. They will take their share of beating about the BILLION dollars for the warranty but I think that only benefits us, the XBOX 360 users. Way to go MS!
- Like this Reply to this comment
-
-
- Yes, way to go
- by qwerty75 July 9, 2007 10:35 PM PDT
- They managed to ship 11.6 million units to distributors. Many, if not most of those units are still in the warehouse. What this means is that couldn't produce as many crappy units because their production sucks. Not that they sold anywhere near 11.6 million units.
- Like this
-
(18 Comments)Yes, way to go.
Meanwhile it is being pulverized by the wii.
Yes, way to go.
Their lack of quality control will cost at least another billion dollars.
Yes, way to go.
XBOX is a money loser and now is going further in the red.
Yes, way to go.
These problems have been well documented since day 1 basically, and they wait how long before acting? And not for the benefit of its customers(that is incidental), but to avoid lawsuits.
Yes, way to go.
Microsoft, you are inspiring!