Microsoft seeing Xbox shortages in U.S.

Microsoft is seeing shortages of its Xbox 360 video game console in the United States, as the company failed to anticipate strong post-holiday demand, Microsoft's games business global marketing vice president Jeff Bell said on Wednesday, February 13.

[ktchong]

A month ago I was saying that Xbox 360 seemed to be selling out everywhere I went, and people (or just the Sony fanboys) denied it and suggested that I was lying.

[doshey]

ya may be selling out but i really doubt that the 360 is in that high of a demand at this point

[ktchong]

Actually, Xbox 360 is still selling out most everywhere -- at least in the US it is. I've just visited the shopping mall and a couple of video game stores last night. The only model available was the cheap 'o Arcade. Premium and especially Elite was nowhere to be found last night.

[ruibing]

Check nowinstock.com if you need to buy any 360 or accessories, as of right now everything is in stock. Using local stores as evidence is nothing more than a self-fulfilling prophecy.

http://www.nowinstock.net/x...

[mintaro]

how does The Round Peg have so many disagrees.
what is there to disagree with?

[Martini]

haters...

[Cryos]

People are probably disagreeing because a SHORTAGE is different then HIGH DEMAND and selling out. Saying that you can't find whatever console anywhere is an example of a shortage. MS admits as much.

The problem comes in when you (the consumer) views the shortage as high demand. And this is not necessarily the case.

For example:
If a store gets in a box of systems (lets say 10) this week. If they're next shipment is next week, and they sell all 10 consoles in 2-3 days, this equals shortage AND high demand.

But

Let's say a store gets a box of consoles in and they sell out in 5-7 days. Now let's imagine that they don't get a shipment for the next week. On day 12 you go in and, whoops, no systems. High Demand? No. Average demand, but a Shortage on the supply end.

[tplarkin7]

I went to 4 different stores 3 weeks ago (in the Chicago suburbs). There were no Premiums or Elites. I was forced to buy an Arcade model and a HDD.

There is definitely a shortage of 360s. By the way, I saw 2 large displays full of PS3s at BestBuy when I bought the Arcade Pack.

[Silellak]

It's not terribly surprising. There were a lot of 360's sold in the US over Christmas, and people tend to migrate towards the system their friends have. You can play with them online, borrow games, etc.

That, and price cuts, are the big reasons you see sales of a system skyrocket as it gets older. People forget that most of the 120 million PS2's weren't sold until the system reached the magical $199 price point.

You can see the opposite happening in Japan. Less people owning one = less incentive to get one yourself.

I'm not sure why people are surprised that the 360 is still selling well. Just because the PS3's 2008 line-up looks to be better than the 360's doesn't mean that all those awesome games that came out in 2007 went anywhere - they're still incentive to buy the system.

I know I personally have a backlog of impressive 2007 games to catch-up on at one point, assuming I ever finish the Witcher or find a way to stop being hopelessly addicted to CoD4...

[ThaGeNeCySt]

"I'm not sure why people are surprised that the 360 is still selling well. Just because the PS3's 2008 line-up looks to be better than the 360's doesn't mean that all those awesome games that came out in 2007 went anywhere - they're still incentive to buy the system."

I love this right here, this is COMPLETELY TRUE... just because 08 rolls around doesn't mean 07 is obsolete... the same way Uncharted/Ratchet & Clank/Heavenly Sword are reasons to own a PS3 as well as the games 08 holds for the PS3.

[etownone]

i dont understand why you get disagrees when all you point out is fact.

and as for ThaGeNeCySt..... none of those games are AAA, none of those are reviewed higher than 90% on metacritic.com, and none of those sold over a million yet.... so those games are NOT imcentives to buy a ps3,
unlike the AAA games that came out in 07 on the 360

[-EvoAnubis-]

Hmm. None of those have sold a million?

http://n4g.com/ps3/NewsCom-...

Oops . . . you might be wrong about that. I guess maybe we should base statements on actual facts and not fanboy assumptions, yeah? Or, at the least, if you're going to do the latter, take it to the open zone.

[kenjix]

All the holiday RROD machines need replacements, probably hard to keep up :P

[Dashmoney101]

all thats at my local walmart is a 1 or 2

[ReBurn]

The only 360's I've seen lately are Arcade systems. Those things are everywhere.

[Aaron_V667]

Anyone think MS are pre-damage controlling the npd numbers.

[ReBurn]

Nope. I don't think that. I don't think that Microsoft has that kind of influence.

[socomnick]

I got 2 friends that are angry they want elites but they are sold out everywhere.

[Expy]

There were 5 elites at my EB today, just sitting there.

[proArchy]

MS trying their hand at the Nintendo strategy is it? Good luck trying to create your own demand side economic growth!

[Dannagar]

I just mentioned that the supply of Playstation 3's are ample and that there was a shortage of 360's in another article and I got laughed at and called "hilarious".

[XBOX 360]

HAH! It's because they need to send so many damn replacements out, they can't keep up production!

[mikeslemonade]

Microsoft shoots themselves in the foot again. With all the top games coming out at the end 07 they should be producing more 360s early 08. It's also pathetic how the PS3, a more advanced piece of hardware, is being produced more efficiently, stably, and sells more. The 360 flat out fails. The console launches 06, their prime is 07, and the downfall is 08.

[BrianC6234]

You got that one right. Or maybe they figured out Nintendo's secret. Don't make enough consoles. Then when there's shortages you can lie and brag about you can't keep up with demand. We all know the truth though. You just want the hype.

And by doing this Microsoft will have less 360s to repair next month.

[kalistyles]

It has more to do with them having to supply enough machines also for the warranty. I mean they must have a ton of machines coming in daily that need replacement from the RROD. They're not that hot. I see them everywhere. You figure for every 1 million that are sold there are at least another 150,000 being sent in and replaced. AT LEAST! You have to think that they are supplying more machines than they really want to. Some for retail sale and some for warranty replacement.

[ThaGeNeCySt]

but they aren't replacing xbox360's with new ones to ship to us unfortunate enough to experience RROD/DRE/etc...they're just "repairing" the ones that come in, and shipping them back

[avacadosnorkel]

Microsoft cut production and was planning to re-release all models with HD-DVD included before Warner's announcement.

[Mr Marbles]

is it so hard for some people to accept that the 360 is still selling well? It is not rocket science, most folks still do not have HDTVs, which means Bluray is worthless to them, add to that, the 360 is cheaper, STILL has more games, has released more games in 2008 so far, arguably has better features, and runs games better, and it makes perfect sense. Plus like someone said, people want what thier friends have.

[RealityCheck]

It does give the impression that a new model may be about to roll out soon. Obviously it wouldn't be an Ultimate with HD-DVD drive, but it could be a model with smaller cooler chipset, quieter parts, better reliability and better margins for them.

[gamesR4fun]

ya like the ps2 it would be very good indeed.
Best case scenario rrod free standard hdd and hdmi output throw in a wi/fi and bundle it with a wireless remote and Im buying one two if its at 199 ;)

[Skater]

If MS sells more 360s worldwide than PS3 does this year. 2007 was the year of the 360 yet it got outsold by a system with not many exclusives. In 2008, Sony has a lot more exclusives so it would be ironic if the 360 outsold the PS3 in 2008.

[etownone]

i dont understand why people keep saying the ps3 outsold the 360 in 2007... when every week on this very website it was discussed how the 360 was outselling the ps3 on a week to week and month to month basis.

console shipped does not mean consoles sold

[chrno6]

what? Where have u been? Ps3 has been outselling 360 on a weekly basis for quite some time already. Don't believe me? Check the WW sales threads.

[Cryos]

1. Most of the articles you see about 360 outselling PS3 are based on AMERICAN sales numbers (yes there are other countries that buy and play videogames). Not international. Overall PS3 outsold 360.

2. i believe it was Q2 last year that Sony adjusted HOW they count consoles. They have since adjusted to count retail sales, not units shipped

[Zhuk_]

This is further proof to conclude why the Xbox 360 is dominating this generation. Consumers demand the best console hardware to suit their gaming needs. Microsoft's console has delivered a fantasic gaming experience to their customers with an unmatched library of exclusives and will continue to do so in the decades to come.

[etownone]

wow...do you work for M$ with a statement like that?

[avacadosnorkel]

BLASPHEMY

[gambare]

but you made me laugh

[aftrdark21]

Another Zhuk clone...wait it's Zhuk_
New account maybe?

[kewlkat007]

but It is , What it is...I don't understand you PS3 fanboys.

It's not like the 360 has not been selling consistant, I mean its been 2 years and it's selling pretty decent. Especially when things usually slow down for a console.

Anyhow..MS might be clearing a model out before a new SKU, who knows.

I won't bicker about it..I guess you can disagree now.

If the games continue to pour out and prices drop, it will continue to sell.

[InYourMom]

to upgrade to an Elite since X-Mas. Haven't seen one on a store shelf in my area and most places I ask have no idea when they will get any more in.

MS hopefully will get this squared away ASAP, I know of a few others that are looking to "Jump In" but they can't even find a Pro.

[aceitman]

is microsoft trying to be like the nintendo wii sold out so much hard to find oh my you cant find a 360 wow this system must be good i have to have it and buy it just like the wii hype gimmick it worked for the wii but its not going to work for the 360 nice low blow microsoft but nintendo beat you to the gimmick and by the way if you cant find one its because people have to trade theres in for there warranty from the red ring of death. im on my 8th one and im pissed off i still have my ps3 from day 1 at launch...

[kewlkat007]

Why do you continue to put up with it? Sell it or something...give it to a family member or maybe charity or something...

[etownone]

if your ps3 kept on breaking down and sony would keep repairing it for free, would you get rid of it? especially since at this time it is the console with the best and highest rated games? (goty 06 and 07)

what if your like me and your addicted to Gears or Halo?? being that those games are still being played by millions on LIVE, its a fact that there are alot of people out there like me.

[aceitman]

thats y kewlkat007 and kid i am not im 37 well a kid at heart me and my son play with his friends too and he is 13 im a kewl dad

[kewlkat007]

thinking your a kid and nothing wrong with playing games at your age, cause I'll be doing the same. That my friend, you have been one of the Unlucky ones with the 360, I'm sure if you got an Elite you wouldn't have much problems but then again you shouldn't have to.

Do what you must....

if you like the games that bad then stick with it, if not throw it in the trash.

As for me, I'd buy a new one if mine broke, simple as that. I like things to work like the next person but hey sh^t happens...deal

[ngg12345]

In westwood, Los Angelese.

[Xbox is the BEST]

the Best Buy in Pembroke Pines FL they have only Arcade SKUs for the last 2 months

[Xbox is the BEST]

Show yourself I DEFY YOU!

[power of Green]

Man you are one funny guy. I agree with #1 I'm sick of getting dissagree's for pointing out weak xbox stock in my country atleast!.

The Elite is the console everybody wants and you can not find one, they made another misstake with shipping like the one they made the year before shipping too much.

[kornbeaner]

In long beach, california there are very easy to find, not sure where they might be selling out cause I can go just about anywhere and find one. Except the elite is still very hard to come by since it's launch.

[ngg12345]

Because I was in the best buy a few days ago (to get some games for my pc). And saw around 30 to 40 xbox 360s.

[ngg12345]

I would have believed this if it didn't come one day before NPD numbers. Seeing how it isn't sold out at amazon, among other things. This is damage control.

[Xbox is the BEST]

would a person pay full price plus shipping and handling?

[XBOX 360]

Why not noob? Amazon offers free shipping on all things $25+

AND THERE IS NO TAX ON STUFF YOU BUY ON AMAZON. Unless you live in Washington state.

So why would anyone want to pay full price + tax + gas? eh.

[power of Green]

Saying you've seen some somewhere doesn't mean there isn't a supply issue as a whole.

Stumbling on a new shipment or a better supplied Region does not change what anybody with any sense have seen and now even the industry and media are reporting it.

Makes you wonder if MSFT ramped up shipments for DMC4 and although the game isn't selling as good as it could(JAPANESE SLASHER) the normal buying trend could be returning.

[kurochi]

no, it just means that which ever MS dept. that's responsible for product placement didn't do their damn job of allocating their products correctly.

[kurochi]

This is some BS that MS is making up.

Go to the Bestbuy at:
Westbury, NY
Noho, NY
Chelsea, NY
Midtown Manhattan,NY
Rego Park, NY
Long Island City, NY
Valley Stream, NY

I've been to 3-4 of them in the last 2 weeks and they have stacks of them on their showfloor......
I don't even need to start with the Circuit City and the Game Stop stores. Please check on Amazon and Buy.com also.
MS is creating artificial demand with lousy PR stunts like this.

I'll tell you what's still kinda hard to find for real though... it's the damn Nintendo Wii......

Edit @ below:

What? You don't like it when you're proven wrong? If you can find a 360 in a huge metro area like New York City, that pretty much tells you what I've been saying is true. Grow up please??? Now the Wii is still hard to find in NYC, but not impossible. Freaking fanboys, you go to the open zone please.

Edit @ below again:

I didn't mention anything about PS3 outselling 360 anywhere. Stop making this a fanboy issue. Grow up and be objective, would you?

[power of Green]

Leave please.

[Funky Town_TX]

My nephew look in 12 stores for a 360 this weekend and no dice. I looked for him also and no dice.

[kurochi]

@ 24.2

Wanna ask your nephew to give me the money so I can pick him up a 360 here in NYC.... LOL

[InYourMom]

The Arcade SKU? I'd say take a picture of this stack the next time you are in and maybe I will believe you.

Maybe you accidentially were looking at the PS3's because those are in piles everywhere I go.

[kurochi]

I love it!!! Fanboy-ism in it's true-ist form going on in this post.

As I said, I mentioned nothing about the PS3 and you guys automatically jump in and compare the 360 sales to the PS3....... what gives?
I mentioned the Nintendo Wii as the products still hard to find in NYC..... why in the world are you guys so insecure about the PS3 when compared to the 360? I don't get it?
There's no way that you guys can ever have an objective conversation when it comes to the 360. If you guys can't please go over to the open-zone?

[Funky Town_TX]

for + 360 news. The gaming industry hates the 360 and N4G is no exception. The stock is low because of either a redesign or a price drop.

[Xbox is the BEST]

100% right. Remember when the Sony fanboys were saying that Dreamcast sold 10 million before the PS#2 crushed it and the same thing will happen to the 360? Didn't happen the 360 sold way more than that taking a portion of Sony's market share in the process.

[InYourMom]

I thought MS bought off the whole game industry? lol

I guess you can look at this as good or bad news so that's why it's posted here.

[avacadosnorkel]

go to IGN for 360 news

TeamXBOX and Microsoft are the reason it's there.

This is a FUTURE site.

FUTURE publishes the official PS mag.

[avacadosnorkel]

360 has all the games...

that you really want to play.

that aren't on PS3.

how many?

seriously, what, 10?

[patterson]

Material suppliers for Tupperware and duct tape are also in short supply lol

[Raptors]

Guess it depends. I was at a Walmart looking to buy a 360 while my 360 got sent off for the RROD (insert joke, giggle here). And I got the last one. Could be coincidence? I don't know. But alot of stores I go to who carry video games have the ps3 in abundance, scarce 360's and the Wii is absolutely nowhere in sight. I live in Toronto so if anyone else wants to chime in on their experience please feel free. Im not agreeing or disagreeing with the article, Im just saying in my experiences I haven't seen alot of 360's either. I see lots of those HD DVD add ons though lol

[Jdoki]

Ok, it's a good thing 360's are still selling well... but let's be realistic for a moment.

Chances are MS are not running production at 100% - they get as many consoles in the shops for the Holiday season and then reduce production and sell out what's left and keep production running high enough to meet projections. Simple inventory management.

What's happened here, I believe, is that MS' forcasting is a bit out. They possibly sold more consoles over the Holiday season or underestimated sales in the New Year. It takes time to react to these changes, so production would need ramping up again to fill demand.

Possibly there's been an increase of warranty returns as well as consoles will getting more use over the Holiday's because people get new games etc as gifts. Like it or not, even if MS have reduced the failure rate to 16%, that's still a lot of machines potentially going wrong during a busy period.

Meeting demand is always a good thing - creating artificial demand is only ever a good short term strategy and I don't think MS are doing that here. MS will increase production and we'll soon see shelves filled with 360's again.

[power of Green]

I just put these types of people on ignor *try and down play any news for the 360*.

What is all that you typed?, does it matter what % production was running at?, more people could have been 360 owners if the type of 360 they wanted was on the market, its simple really.

Creating demand lol. everybody and their mama's have been looking for the Elite's etc the shortage was just over looked by gamers and fanboys due to the hype of VGC for the most part for all we know VGC posting freenzzzies was a tactical tool to destract the media etc.

[Jdoki]

ZOMG OH NOES!!! I'm ignored by PoG!! :)

Obviously 'out of sight, out of mind' must be the best defense some fanboys have to someone trying to add an alternative view to the usual PS3 and 360 fanboy spin.

It's not trying to downplay good news about the precious 360, but looking at it as someone who has been involved with forecasting supply and demand for a global company.

[cpt_kaos]

LOL 360 sold out... if it's anything like where i live it's not selling out because of high demand it's more likley due to the few retailers who still have to honor there exchange warranties they sold to people before they realised what a huge mistake it was for them and have been replacing 360 after 360 returned to them for repalcement. :(

My 3rd is about to die and will be my last microsoft console ever.

Original xbox was a vastly superior in build quality than this piece of junk 360.