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.
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: