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January 9, 2006 1:31 PM

Microsoft Misses Its Own Xbox Target



One week after the Xbox 360 launch in November, we'd noted that amid the runaway crash and burn reports, few had focused on actual sales of the gaming console. Microsoft itself only agreed to speak in terms of 90-day predications. Redmond comes clean in this morning's Financial Times, conceding that it will fail to meet its 90-day day sales Xbox 360 target of 3 million units sold – a forecast that some felt was pie-in-the-sky from the get-go. The company now has a revamped goal of selling 4 million to 5.5 million units by the end of June, which it announced at last week's CES. Microsoft cites a lack of capacity and components, as well as continued shortages expected in January, as the primary culprits of the deficient returns. While we Microsoft Watchers would lend credence to this, we also suspect that Xbox 360 design mistakes may have lent a hand in the shortfall.

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