370°
Submitted by darkride66 1398d ago | news

Analyst reports Microsoft slashing Xbox 360 build plan by 40%

Pacific Crest analyst, Michael McConnell reported this week that rapid deterioration of consumer demand has forced Microsoft to slash its Xbox 360 build plans by 40% for the fourth quarter.

In his recent report of looming difficulties facing the chip sector, according to the Wall Street Journal, McConnell reported that he has “become alarmed by the rapid pace of deteriorating demand forecasts for Q4, the consistency of these findings throughout every level of the supply chain, and, most important, the magnitude of next quarter’s projected sales declines at semiconductor component vendors, which we believe to be underestimated by investors.”

Along with Microsoft, McConnell has also reported that HP and Acer have both also reduced their build plans. (Industry, Microsoft, Xbox 360)

Update Of note, the analyst's quote above was taken from a column published on Barron's website. Barron's is published by Dow Jones and Company who also publish the Wall Street Journal.
It is not known if the report from Pacific Crest's analyst is publicly available.
The Barron's article in question can be found here:
http://blogs.barrons.com/te...

ranmafandude   1398d ago | Trolling | show | Replies(3)
ndibu  +   1398d ago
I don't know...something's off here
Correct me if I'm wrong but isn't this xbox 360's best year as far as demand and sales?
darkride66  +   1398d ago
Nope.
The last 18 months Microsoft reported, 360 sales were off 4 million units from the 18 months before that. Out of the past 5 quarters reported, only one quarter had positive year over year growth and in the first six months of the year alone they trailed the PS3 by 1.6 million consoles according to official numbers. On top of that Microsoft has been reporting (up until last quarter) a full year of declining revenue from the 360 console and declining software sales - offset by increased XBL revenue.

Since the 360s went on sale worldwide in Mid July we've seen a spike in 360 sales in the US but no official numbers are available from Microsoft for that time period, and the recent spike we've seen in US numbers probably has more to do with the price cut on old consoles then it does with the limited quantities of the 360s that are available.

And now it looks like Microsoft is dramatically trimming their 360 production. It appears there's a bit of a disconnect between how well Microsoft says they're doing with the 360 and what their actions tell.
Forbidden_Darkness  +   1398d ago
Great reply Darkride66, you defiently deserve a bubble for that. The XBL revenue makes me wonder if that is the sole reason that upped the price to 60 dollars, to make a bit more because of falling 360 sales? Which isn't a big price increase, but there's nothing to really back up why they raised it for the gamers side of it, and with alot of gamers finding it hard to buy things in this economy, ten bucks is alot, especially for people who are getting hours cut or being laid off.
Nineball2112  +   1398d ago
You know, that makes sense to me. As Forbidden says, the increase in the price of Live may very well be due to the fact that there is declining revenue from the hardware side of things.

It'll be interesting to see the official numbers from Microsoft's financials when they are available.
catguykyou  +   1398d ago
The whole reason why Console makers can't make their systems life spans last longer than 6-7 years before releasing another system is because of this. They have to continue to sell lots of systems and they have dried out the market by that point. I expect to see new consoles announced at this years E3 with continued support of the current systems for another 5-7 years after (like the ps2 and ps1 did).

***********

@disagrees
Look at every console released thus far in the industry. How long of a life span did it have before the next iteration was released? This doesn't mean the company stopped supporting it, they just released the new product. To think that Sony or Microsoft or even Nintendo will just sit on the current gen consoles for another 5 years is ridiculous. I know some of you only just bought a console because of the price but that doesn't mean you didn't just buy 6 year old consoles.
#2.1.3 (Edited 1398d ago ) | Agree(6) | Disagree(6) | Report
outrageous  +   1398d ago
M$ killing the competition...
Great piece...and Xbox 1 lost 3.7 billion...lol. How far back does this clown want to go...Who are all the people who are buying the new xbox since June???...LMFAO. How does he think Halo reach, Fable and CoD are gonna do for the 360 this holiday.

@Darkride66...keep crying, many analysts are predicting M$ may jump out in front of Sony by 10+ million units by the time the holidays are over...lol. It's been 5 years and Sony is still in last place, even with M$ not selling anything in Japan. XBL is the envy of the entire gaming world and has generated 1++ billion dollars. What was M$ net profit last year...exactly. Why don't you talk about Sony's 100's of millions lost every quarter...lol...oh yeah, that's right, Sony's on top, starting at the BOTTOM.
JBroken  +   1398d ago
18 months? Thats dating all the way back to 2008
The guy asked about 2010 being the best year so far then you go and give him a long speech about the past 18 months
Nineball2112  +   1398d ago
Wha?

18 months = 1 year + 6 months.

According to my world, this is Sept. 2010.

So, less one year = Sept. 2009
Less 6 months = March 2009

Umm, yeah... 2008, not so much.
Wh15ky  +   1398d ago
@catguykyou
The reason that new consoles are released every 6-7 years is advancements in technology not a "dried out market". The big profits are not made from hardware sales, they are made from software sales.

I think a new xbox and Wii COULD be announced next E3 but not because of their markets being "dried out" its because the technologies in their current systems are becoming very dated.
#2.1.7 (Edited 1398d ago ) | Agree(7) | Disagree(0) | Report
nickjkl  +   1398d ago
why do you have one bubble that post is godly
bigwheelstuntshow   1398d ago | Spam
Oner  +   1398d ago
...
@ outrageous ~

-----------------------------
"many analysts are predicting M$ may jump out in front of Sony by 10+ million units by the time the holidays are over...lol."
-----------------------------

LOL is right. You keep hoping for that one to be true.

-----------------------------
It's been 5 years and Sony is still in last place
-----------------------------

Bzzz Wrong. #1 because the PS3 has only been out for ALMOST 4 years. But mainly for #2 because you said "SONY" which has PS2, PSP & PS3 just like Ninty has Wii & DS, Microsoft ONLY has 360 in the console market and are TRULY the ones dead last if you want to speak reality.

-----------------------------
...M$ not selling anything in Japan.
-----------------------------

You got that partially right!

-----------------------------
XBL is the envy of the entire gaming world and has generated 1++ billion dollars.
-----------------------------

If you think off the backs of people who have absolutely no choice to do so is "cool". Because everyone who has a

Wii
DS
PS2
PSP
PS3
PC
Hell even those who had Dreamcast's

All get the same ability (and some actually more) FOR FREE! But I ask what does M$'s "generated profit have to do with YOUR GAMING?

Nothing.

You play sales while EVERYONE else plays games...and honestly (especially right now) the 360 is in dire need of exclusive titles to keep up.
#2.1.10 (Edited 1398d ago ) | Agree(11) | Disagree(4) | Report
The Lazy One  +   1398d ago
"and the recent spike we've seen in US numbers probably has more to do with the price cut on old consoles then it does with the limited quantities of the 360s that are available."

maybe last month. The S has been out for 2 months, and the sales are only going up. If it were more isolated to June, then maybe you'd have a larger point, but there's little evidence that 360S's are not selling.

Since the launch of the S, the worldwide sales of the slim have been doing better than the PS3 slim did originally, and without a $100 price drop to go along with it.
Kain81  +   1398d ago
i think it has more to do with the stockholders. The stockholders/Investors are against the 360 division... http://www.businessweek.com...
Non_sequitur  +   1398d ago
I guess this may have to on how they report their inventory in their balance sheets.
bigwheelstuntshow   1398d ago | Spam
sack_boi  +   1398d ago
This crapticle makes no sense at all.
commodore64  +   1397d ago
"This crapticle makes no sense at all."
well, what do you expect?

It was written by none other than darkride66.
It was submitted by none other than darkride66.
SMGamers.com is darkride66's blog.

The actual post from Barron's reports weakening demand across the ENTIRE chip sector, not just what the headline implies.

What's more, the 40% reduction in production for the 360 is likely a ramping down of production after extra 360s were produced for the expected spike in demand following the release of the 360s.
This was to be expected, ceteris paribus.
Darkride66, however, conveniently neglected to mention this.
Is anyone surprised?

As a perfect parallel example, the ps3 experienced a similar spike in demand following the release of its ps3 slim, and subsequent reduction in demand and production last year.
http://www.escapistmagazine...

Funnily enough, the author darkride66, seeks to spin this as a specific negative for the 360, when cutting back production is actually a feature of the entire 'chip industry' and not restricted to the 360 alone.
Why does he do that?

How is it that this has become a specifically negative 360 spin, when in fact a multitude of related industries are experiencing the same circumstance?
It makes no sense.

Unfortunately, we all know that Darkride66 has often made analytic excuses for the ps3 profitability, blaming the global financial crisis and the appreciating Japanese yen for the PS3 losses.
Yet, now, he doesn't seem willing or able to apply the same business sense.

I honestly wonder about that guy.

Now I am just waiting for Darkride66's multiple account 'Coljessup' to show up.
#2.3.1 (Edited 1397d ago ) | Agree(6) | Disagree(6) | Report
ColJessup  +   1397d ago
That's funny, yet I'm not laughing.
You keep accusing me of being DR66, yet I haven't got a clue why. Just because I call you on your crap? How many other users who disagree with you do you PM accusing of being DR? If you think everyone who thinks you're full of it is DR, you must see Darkride everywhere. "Ah! He's over there! Now he's over there! He's everywhere!" That's a little freaky if you ask me.

I PM'd DR and know a bit about what you're about. I haven't been on this site long, but one thing that's consistent, whenever I see you posting it's crap. At least DR makes sense and sticks to the facts. You should try it sometime, instead of lies you push. "It's just ramping down because of ramping up!"

Brilliant. Now try to prove that just isn't a bold faced lie that you made up. Where's the proof that Microsoft is ramping down because of increased production? All I see is an analyst saying MS is ramping down because of falling demand. The numbers DR gave above seems to back that up. A whole year of falling sales? Spin that, loser.

I don't know if this site is DR's blog and frankly I don't care. He links right to article and it says clear as day, Microsoft is cutting 360 making by 40% due to falling consumer demand. DR's article is right on the money as far as I can tell.

And what's this BS about ramping down production? Don't you think the analyst - who tracks the industry and chip sales would know if this was the case? And Microsoft didn't ramp up anything. The fact is the 360s is in short supply and Microsoft said they're in short supply. Why would they ramp down if they can't keep up with demand? Why don't you use your head?

You accuse DR of spinning this negatively. And then you try to positively spin a forced 40% cut in production. Do you have any clue how much of a loser that makes you look?

I look forward to continuing to shoot down your crap with plain, old fashioned logic. I'm pretty sure everyone already knows what a troll you are - but it's fun to cut you down because you're so out to lunch with your comments. You can't argue, so you just invent crap. It's hilarious.

Pretty obvious to me, you can't handle the truth!
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Dragon_Hiko  +   1397d ago
@ ColJessup
Very nice. +Bubs for owning the 'intelligent' trolls. ^_^
It's just so refreshing to know a few people can actually use their brains like you. Haha
ColJessup   1397d ago | Personal attack | show
Omega4  +   1398d ago
If they are having to cut down and they are still selling so much they should definitely be able to keep up with console demand when Reach and Kinect hit.
Forbidden_Darkness  +   1398d ago
I just don't see Reach giving them more console sales, anyone who likes the Halo franchise or ever wanted to try it, should already have a 360. As for Kinect, time will tell, i'm wondering how it'll fair with new comers.
T9X69  +   1398d ago
Halo Reach limited console, people that already own a 360 will sell theirs just to buy that one. That's like saying GT5 isn't a system seller because anyone who wanted to try GT should already have a PS3.

@lokiroo420 - Doesn't matter there is still a next gen GT game on the PS3, if you wanted to play GT on your PS3 its possible.

Halo isn't a system seller but GT is? Get the fuck outta here with your fanboy BS.

Halo Reach has over 2 million pre-orders which is more than most PS3 exclusives sell in the entire existence, to say its not a system seller is just idiotic. Some of you guys try so hard to spin the dumbest shit its not even funny.

EDIT:

http://www.amazon.com/gp/be...

Look at #4 on the list, and you're going to tell me Reach isn't a system seller? This is just Amazon to, that's not including every other retailer around the world. You kids are in denial.
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lokiroo420  +   1398d ago
No its not the same as people wanting gt5, there hasnt been 3 games released with the gran turismo name.

edit:
"Halo isn't a system selling but GT is?" Care to write that in English?
#3.1.2 (Edited 1398d ago ) | Agree(14) | Disagree(12) | Report
fooltheman  +   1398d ago
what hit what? all those angry moms that throw disfunctional kinect at your head?
wollie  +   1398d ago
Except a real GT games hasn't been released for the PS3
lowcarb  +   1398d ago
Halo has become a must have household name title unlike GT5. Because of this just like the Wii I can see many newcomers jumping on the Reach360 bandwagon. If gamers wanted a console to play GT5 so bad they would have already purchased one for Gt5p by now. This holiday will end the speculation once and for all.
likedamaster  +   1398d ago
@Forbidden_Darkness
Sounds like the same regurgitated bullcrap I see on every other thread about Halo.

Halo moves consoles.
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nnotdead  +   1398d ago
all of you are idiots. big games will bump console sales. i doubt Reach will have the same impact as Halo 3, but it will have one non the less. GTP isn't GT5. i have no idea how one could argue Reach will push consoles but GT5 won't, because GTP already came out.
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UNCyrus  +   1398d ago
Omega,
US isn't the only region that matters, you forget that
frelyler  +   1398d ago
@T9X69
I get what you are saying, however there have already been three halo games thus far in the 360's life cycle. There have been ZERO GT's and a lot of people have said in there comments all over the web that they are waiting to buy a PS3 until A:) a price drop or B:) GT5 comes out. There has already been a price drop so I would imagine there would definitely be a sales boost. The same could be said for 360 IF there had been no Halo games this gen yet, but that is simply not the case. Just thought I would point out your failed/ lack of logic. Also you seem so angry do you need a hug?
Steve_Urkel  +   1398d ago
"There have been ZERO GT's"

Really big guy? What about the 5 million copies of GT5P sold?
Dlacy13g  +   1398d ago
@Steve_Urkel
Many don't recognize the existence of GTP as it will upset them to know they paid $40 for a game that gave them 1/4 of what they will pay for GT5 proper.

GTP is a slap to the face when you compare what it offered fans versus the real deal.

But remember....GTP does not exist and therefore cannot be used against a fanboy argument.
Trebius  +   1398d ago
GT5p is a demo.
It's not a full game, nor was it expected to be received as one, considering there was a GT3p years ago, which also sold millions, then the release of GT3 doubled it.
scofios  +   1398d ago
@Dlacy13g
halo odst that dlc that is sold for full retail price remember .
and cackdown 2 ?? . but he cannot be used against a fanboy argument.
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Dlacy13g  +   1398d ago
@scofios
I will give you Crackdown 2 as I felt that game did very little to change anything from the first and very much felt like an add on.

Halo ODST I will argue. Yes it was a short campaign...but it was good, fire fight was such a tremendous addition to the series and game play that it really made it a real game to me.

Now...would I be upset if either of those two games had been priced at $40 instead of $60? Nope. I think especially for Crackdown 2 $40 was the right price not $60.

If GT5P was a demo as you say then it should have been priced like one. Not $40 like they did but at most $20 and even that is a stretch. I am sorry but no "demo" is worth $40.

Back on topic...the whole point of this is 5 million people did buy the GT5P "demo" and thus the thirst for a GT game on the PS3 has been addressed...albeit in demo form.
dragon82  +   1397d ago
@Dlacy13g
Well if a overpriced "DEMO" of GT5 sold over 5 million copies (PSN purchases are not added in to the sales figures). Imagine how many copies the "REAL" game will sell.

Can't we all just agree that GT5 and Halo Reach will both be sales juggernauts??
#3.3.6 (Edited 1397d ago ) | Agree(1) | Disagree(0) | Report
frankymv  +   1398d ago
the 360 is showing its age. tick tock.
#4 (Edited 1398d ago ) | Agree(18) | Disagree(11) | Report | Reply
memots  +   1398d ago
actually
I was really suprise how quickly it started to show its age. I mean there hasn't been much evolution in the game that was released. It seems to have peaked out a while back now.

But i have high hope for Reach. I have a bunch of card for 1 free month of Xbl Gold that will get used when this comes out.
#4.1 (Edited 1398d ago ) | Agree(4) | Disagree(2) | Report | Reply
DigitalRaptor  +   1398d ago
The golden age of the 360 has been. It's gone!

Now only Halo and Gears fans should see the need to buy one.

Reach is the last quality Halo from Bungie, and Gears of War 3 is the last in the series as far as I know. Kinect is epic fail for the core 360 supporters and there's been very few signs of Microsoft's interest in the hardcore, especially regarding exclusives.

There's so much vitality left in the Playstation brand currently, especially if you looks ahead at all the exclusive new IPs, promising sequels and the fresh way in which publishers and developers now see the PS3 as a completely viable platform:

Valve, EA, Capcom, Bungie and many more.

2009 was a major turning point, if not 2008 (with MGS4 and LBP). And now all I can see is great things ahead!

This comment will probably get many disagrees, and I can't help those of you 360 fans who might get a butthurt reaction from it, but it's Microsoft's fault, not yours - remember that!
lokiroo420  +   1398d ago
Greenturd cant spin this into an NPD victory.
00000000000000000001  +   1398d ago
Halo Reach Xbox 360 bundle on Amazon.com = #4. I would have to guess that not all those are people that already own xbox 360s.
fooltheman  +   1398d ago
is amazon the world...?
360Defender  +   1398d ago
Only when it has something good to say about PS3 it is. N4G PS3 fanboys lol!
lowcarb  +   1398d ago
"is amazon the world...?"

Sony's loosing this gen so stop taking it personal you sore loosers. You see if you never talked trash when Sony started baiting you with best graphics and 1st party exclusive nonsense there would be no need for any of this.
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RememberThe357  +   1398d ago
lowcarb
Lets be real. I know you can do it, you've done it many times before. This is not a race and you know it. The point of being in business is to make money. Peter Bille just said that the SCE is a 20 billion dollar business. That is nothing to scoff at.

http://seattletimes.nwsourc...

The PS3 also has shown the most impressive graphics and has the best first part games. So, I wouldn't call that nonsense.
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Trebius  +   1398d ago
heh
It's sad that having the best graphics and the most 1st party exclusives (BY FAR) is considered nonsense this gen.

I guess paying to play online, DvDs, Kinectimals and expensive proprietary hardware is not nonsense.
lowcarb  +   1398d ago
Remember
Where in my comment did I say anything about this being a race or about making money for that matter? My comment was clearly projected at someone above for acting like a sore looser in this retarded console race.

"The PS3 also has shown the most impressive graphics and has the best first part games. So, I wouldn't call that nonsense."

Not only is that comment highly debatable but it's also quite arrogant. I believe 360 has put out the best looking games this gen but will not sit here and pretend my opinion is accurate.
RememberThe357  +   1398d ago
"Sony's loosing this gen so stop taking it personal you sore loosers" How could they be losing if it's not a race?

Also, my comment was not meant to be taken as fact. But to show that it is not nonsense to say that Sony has the best 1st party and that the console has shown us the best graphics. Just as you saying the same for the 360 isn't nonsense even though I can't think of a single game you would be referring to.
fooltheman  +   1397d ago
The only winners should be the gamers...
Is microsoft going that way too?
awiseman  +   1398d ago
Detrioration of consumer demand??? LOL
Great way to build credablility xbox is #1selling console in the us right now thx to halo reach.
sack_boi  +   1398d ago
Just look who posted the article and the source, that guy is a SDF member.
awiseman  +   1398d ago
ye true
ps3 fanboys r probably jumping of the walls u no if sony had to do this it would never appear on n4g. They wud keep it secret. ill bet by tomorrow this will 500 + degrees this is rediculous

just lok at how many thumbs down I have bacuz sony fanboys ignorance.
RememberThe357  +   1398d ago
How does that change the reality of the information?
The 360 is number 1 in the US so it's supposed to be doing that well around the rest of the world? Not great logic.
awiseman  +   1397d ago
typical bs news form n4ps3fanboys(g)
All this garbage is written to distract ppl from the ps3 which is seeing reocrd low sales. PS3 fanboys swarm in and creates flame wars to support this bs.
Jazz4108  +   1397d ago
The ps3 has to be th slowest console ever built as far as moving around it and playing games and installing games and firmwares. In my opinion its been dated since its release.
chazjamie  +   1398d ago
that explains a lot
militant07  +   1398d ago
Isn’t this absolutely make no sense?
coolbeans  +   1398d ago
Your sentence or the report? :P
rekof  +   1398d ago
that was so ugly ,.. but funny ,.. you should give the man a bubble !!
funniest thing ever!!
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Jsynn7  +   1398d ago
All your base are belong to us?
labwarrior  +   1398d ago
Analyst reports ... really now ?
Well, lets not take that for granded

Sales are some of the strongest in 2010 on consoles and are obviosuly expected to grow

So, what is the meaning of this report ? If MS slashes build plan by 40% then Sony would slash it by 90% since PS3 is so far behind in sales
lokiroo420  +   1398d ago
Ps3 is showing yoy growth unlike the 360, why would they cut back their production?
Makidian  +   1397d ago
No part of what you wrote actually makes sense. I don't know if you haven't been paying attention but the PS3 and Xbox 360 have a rapidly closing gap. If they win a couple of months in the US, but get outsold in the rest of the world, then they aren't really "winning" anything at all.
Phil Mc Crackin   1398d ago | Trolling | show | Replies(2)
joypads  +   1398d ago
what they tell you & what's happening are 2 different things
they claim xbox360 is selling well then they go & close a xbox factory here & slice another one there. did you get the real picture yet ;) ? xbox360 is dying. ;)

the only console "genuinely" going from strength to strength in sales each year is the PS3 .
360Defender  +   1398d ago
Well when you start from a position of selling nothing, you can only go up. Nice job PoS3.
nnotdead  +   1398d ago
is it wrong that such a fanboy comment made me laugh?
wages of sin  +   1398d ago
Interesting...
I find it interesting to see how things are changing. Microsoft is in a tough spot. PS3 is on the move-no pun intended-and Kinect may tank hard (I'm buying one). It's a good time to be a gamer because this is when you fight for survival. That benefits us.

Oh and by the way, the fee increase for XBL...I think it's to cover ESPN and whatever else is coming to live soon.
Counter Strike  +   1398d ago
Sony dont need to Cut
because they dont sell anything hahaha
BabyTownFrolics  +   1398d ago
would it be too much
to perhaps cite the WSJ article that the blog quotes from, cause searching for Michael McConnell (the analyst in the title), Microsoft, Wall Street Journal brings up nothing. I would just like to read the actual wsj article.

no quote attributed to McConnell in the blog post mentions anything about a 40% slash of anything.

here is the quote attributed to McConnell:

“become alarmed by the rapid pace of deteriorating demand forecasts for Q4, the consistency of these findings throughout every level of the supply chain, and, most important, the magnitude of next quarter’s projected sales declines at semiconductor component vendors, which we believe to be underestimated by investors.”

where is the quote that states, "microsoft slashing xbox 36 build plan"?

also a search for: "microsoft xbox production cutbacks" brings up nothing.

so if anyone could provide a link to the original wsj article that would be greatly appreciated, even though the minimum of journalistic standards states that citation should be available on the blogs post.
#15 (Edited 1398d ago ) | Agree(1) | Disagree(2) | Report | Reply
Nineball2112  +   1398d ago
^^^

I didn't find the link for the original Wall Street Journal article, but here is a link that references the same article.

http://blogs.barrons.com/te...

If I find the original WSJ article, I'll edit and give the link.
drsnobby  +   1398d ago
same
I smell something rotten in this story.i,ve seached also and found no proof that goes along with this story.it,s amazing that stories like these come out after the NPD report.what i found odd is this slashing 40% thing,but i see the name of the contributor and bingo nuff said. why is the 360 still selling well in NA? demand for the console is up,so why would MS slash by 40%? i,m with baby town frolics.unless i hear it from bloomberg news or WSJ then this is nothing but a feel good story for the MS haters.
#15.2 (Edited 1398d ago ) | Agree(1) | Disagree(4) | Report | Reply
Nineball2112  +   1398d ago
^^^

Click the link in my post. If that isn't independent proof of the article existing, I don't know what is. *shrug*
BabyTownFrolics  +   1398d ago
thanks
but the original source material is better than another article which offers no citations. It is strange that the original article cant seem to be found, no date of publication, no original author of the wsj article, nothing.

I would still like to see the original wsj article and the context in which these statements were made. Its not that I dont believe the info but its too easy to spin info when you dont give the reader the opportunity to come to their own conclusions with the original source material.

also I dont get the disagrees for wanting to see the source material, this is a perfectly normal request that is intellectually honest. in fact not providing citations to source for a quote is not only bad form but a sign of either gross inexperience and or gross journalistic negligence.

i want better from my gaming journalism and so should you.
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Babypuncher  +   1398d ago
you should read the comments to the article you linked nineball, sounds like fanboys with degrees...priceless
Babypuncher  +   1398d ago
From the article:

In his recent report of looming difficulties facing the chip sector, according to the Wall Street Journal, McConnell reported that he has “become alarmed by the rapid pace of deteriorating demand forecasts for Q4, the consistency of these findings throughout every level of the supply chain, and, most important, the magnitude of next quarter’s projected sales declines at semiconductor component vendors, which we believe to be underestimated by investors.”

I don't care if you hate MS or not, this is not good for anyone. If MS, Acer, and HP are all cutting back and the Wall Street Journal thinks they are UNDERESTIMATING the decline in sales, then this is really bad.
#16 (Edited 1398d ago ) | Agree(2) | Disagree(1) | Report | Reply
drsnobby  +   1398d ago
wait a sec
is the chip for the 360s cheaper to make? http://www.kotaku.com.au/20...
yourfather  +   1398d ago
@artsaber
"Microsoft removing Kinect's processor"
myabe not
http://gamrconnect.vgchartz...
artsaber  +   1398d ago
Well, lets hope not.
The version of Kinect that folks (including myself) were somewhat excited about was advertised as having its own metal. I know it is good business sense to cut costs, but not to the point of disabling the device as advertised (IMO). I hope that MS realizes that Kinect needs the best chances possible by not relying on the 360's processor and having its own. Hopefully they will listen to developers, if they are making the case for this... just like the makers of Gears were responsible for Microsoft doubling the RAM in the original 360 design. To imagine those idiots were gonna go so cheap, they were gonna cut the RAM in half... at least that is how the story was told.

http://www.joystiq.com/2006...

I laugh at all the fanboyish misinformed comments of that old article... "The 360 can handle more advanced AI", etc. LMAO.
#17.1 (Edited 1398d ago ) | Agree(0) | Disagree(1) | Report | Reply
divideby0  +   1398d ago
dont see this as a big surprise.. 3Q is the hot quarter for chips... get them so they can be put in boxes by start of 4Q in time to complete the build for the xmas shopping

1Q is slow for chip sales (consumer).
drsnobby  +   1398d ago
where is the proof?
where is the original link to this story? the source,not the contributor
earbus  +   1398d ago
Good move the finacial crisis is far from over sales and demand for all companies will decline next year .
dong123   1397d ago | Spam

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