Microsoft to sell upwards of 3 million 360s by year's end?

by Blake Snow { Nov 22nd 2005 at 4:33PM }

Microsoft intends to sell 2.75 to 3 million Xbox 360 units by year's end despite reports of a 50% pre-order shortage. The Redmond, Washington company also plans to ship 5 million units worldwide by the end of its fiscal year, June 30.

So was the shortage a publicity stunt? If not and given the lack of currently available units, can Microsoft logistically hit this target?

Update: Microsoft's PR firm (Edelman) is reporting that Microsoft intends to sell 2.75 to 3 million units worldwide by February 2006. This contradicts IGN's "by the end of the year" statement.

Reader Comments (Page 1 of 2)

mike @ Dec 18th 2005 9:02PM

they'd be lucky if they sell 1 Mil.

ramen @ Dec 18th 2005 9:02PM

if it were, i'd have an xbox360 in my hands right now.

and crazy desperate fools like this guy wouldn't be around:

http://cgi.ebay.com/Xbox-360-PREMIUM-In-Hand-11-22-Guaranteed-Xbox360_W0QQitemZ8236071424QQcategoryZ62054QQrdZ1QQcmdZViewItem

fiXXXer @ Dec 18th 2005 9:02PM

If they plan on selling 3 million units, they should try supplying each store with more than a dozen units, and maybe do something to releave the anger and frustration many of us are feeling today after this huge 360 launch letdown.

Adam @ Dec 18th 2005 9:02PM

Wasn't one of the main problems the shipping?

ramen @ Dec 18th 2005 9:02PM

it seems as if Microsoft has produced more X360 units to be given away free (via Mountain Dew, radio station giveaways, etc..) than they have made for actual sale at retailers. yup, big publicity stunt, it is.

alienhead @ Dec 18th 2005 9:02PM

So....pre-orders are definately the way to go........hahahahah

Chris @ Dec 18th 2005 9:02PM

People people people please.. They will reach the target, and here is why.
1) Production continues and actually yields improve over the coming months
2) The plan from MSFT was to have even shipments from day one. There are already reports from stores that they have sold out of some of the launch titles. So, it makes sense that MSFT want's to delay purchases until the retailers can refill the shelves with games and accessories.
3) I suspect that once the global launch is completed, MSFT will have a better idea as to global demand so they allocate more effectively.

Personally, I think stores will get a decent amount every week from this point forward. As the month progresses, the bitching will stop and all of this will seem funny.

Personally I just cannot believe people can think of nothing better to do with their money than pay 5-6x for a unit that they will eventually get.

Spend it on a escort, it might do you some good!

Sense @ Dec 18th 2005 9:02PM

*clicks ruby slippers*

Please let it be true...
Please let it be true...
Please let it be true...

*looks around, no 360's in site*

Damn!

Sense @ Dec 18th 2005 9:02PM

Urgh. I misspelled. Damn it.

kevan @ Dec 18th 2005 9:02PM

I pre-ordered 2 months ago, and was told today that I wouldn't receive a machine by year's end. Apparently I am 111 out of 114 waiting at this particular Gamestop. Only 3 people ordered in the 8 weeks since?

I was resigned to waiting, but something seems a little dodgy about this particular situation to me...

Cyberclaws @ Dec 18th 2005 9:02PM

I got in line at local retailer at 4am. Missed the Premium bundle set, but was able to secure a core system. Then went to the local 'warehouse' retailer and secured the 'Premium' bundle, came with retail premium PLUS an extra wireless controller (and peripheal) and 1 game (Kameo). Score! Now I just got to figure out what to do with my extra 'core' system I got...

Corey Poole @ Dec 18th 2005 9:02PM

3m, thats a big number, but I think they can do it. I can't believe how fast they sold out. I was calling my local walmart to get some info at 7pm, and they said they already had a line of however many systems they had, 16 I believe. After that I freaked out and called another Walmart nearby, When I got their I was number 8 in line. They only had 12 units, 2 pro, 10 core. :( They ran out of wireless controllers b4 I could get to pick a couple out.

Cyberclaws @ Dec 18th 2005 9:02PM

Take Two @ Dec 18th 2005 9:02PM

I'm a huge Xbox fan, and I was totally let down today. To achieve 3 million consoles in 3 months, they cannot have supplies like they did today.

Not a single store I visited was able to sell an Xbox 360 to walk up customers during normal business hours.

When I inquired about the total quantities they had available, the numbers were often low. Circuit City had 18. GameStop had 10.

When I questioned when another shipment would be in, I got "Before Christmas" and the discouraging, "We expect to have two more shipments by the end of December"

This coming from MAJOR retailers.

Simon @ Dec 18th 2005 9:02PM

1) Their shortage is laughable.
2) A lot of buyers are unimpressed with the supposed-to-be-but-failed next gen graphics MS were boasting.
3) And yes, #1, I agree in part, I don't think Xbox 360s will sell much.

george @ Dec 18th 2005 9:02PM

well, I got mine, and I didn't think it was such a big deal, only took 13 hours of sitting in 35 degree rain! *laughs into a shivering, coughing fit*

soco @ Dec 18th 2005 9:02PM

Microsoft for sure didn't ship all of the units they had over to the US launch. i'm sure that some of the units sitting in the factories in china have already been put in euro boxes with the major 5 languages on them. if they shipped all them to the US, they'd be able to make about 150K-300K for all of europe in the almost 2 weeks between the release dates.

had there not been a shortage, they would've passed a million today, if they didn't already. 3 million for a simultaneous holiday launch really isn't that much if you think about it. they could probably pull ~ 1.5-1.8 million in the US alone, and almost a million in Europe, and _maybe_ 100K in japan.

i mean just look how long it took Sony to stockpile enough for the US and EUro launches of the PSP, and they still couldn't produce enough for the Euro launch months later.

ZildjianKX @ Dec 18th 2005 9:02PM

This is all just such utter crap. Anyone know how many units they ended up selling today? My guess is less than the measly numbers of the PS2 launch.

Then of course you see pictures like this that just want to make you puke:
http://img.engadget.com/common/images/3060000000054620.JPG?0.1391205927260183

It amazes me how many Xboxes they'll give away for marketing, but the consumer who wants to buy one can't.

Dan @ Dec 18th 2005 9:02PM

I pre-ordered mine 2 months ago and it shipped last night and is out for delivery as I sit here at work looking at the clock. Lucky I guess, or checking the Costco website constantly until they had orderable bundles (at less than retail price even). After shipping though, it's like only a $30 savings.

I love Costco.

Romero @ Dec 18th 2005 9:02PM

The person who ran that ebay auction got scammed. The winning users ebay ID was created today. Zero feedback. I sell on ebay for a living and when you get a bidder who created their ID on the same day of an auction they won it is always bogus.

e2 @ Dec 18th 2005 9:02PM

When I first heard of the global launch, I thought to myself cool idea. But if this is what we can expect because of it, then I say-- hope no one else does this. It sucks when you don't have a fair chance at getting one.

Lon Baker @ Dec 18th 2005 9:02PM

As I posted at my blog, the test of this will be this Friday aka Black Friday. The biggest day in retail sales.

If XBox 360's are not lining the store shelves that day. Microsoft will have blow it big time.

This seems to be a typical Microsoft launch. Promise the moon, but deliver a mediocre hard to come by product.

Zo @ Dec 18th 2005 9:02PM

J. Allard was interviewed today (CNBC) and stated that they will be resupplying the sales channel every week till the end of January. Their biggest problem is getting items through customs. So, if you didn't get one this week their will be more next week and every other week. Given the choice to sell more units or piss off people, why would MS choose to piss off people? Something tells me the retailers are part of the problem. Its like the night clubs that have 500 people waiting outside and you finally get in and its like WTF -- nobody is inside. If they keep you coming in you may buy something else they have.

StalkerSteve @ Dec 18th 2005 9:02PM

@14

I totally agree with you. Paris w/ a 360 makes me sick. Microsoft needs to cut the hype machine out for a while. They've got their publicity, and some of us just want a f***in system.

There's no shortage, they just want to be able to guarantee a launch day sellout, and they've done that. Nobody should be going on ebay for these. It just encourages the scalpers to do it again if you pay their outrageous prices. I actually encourage people to create fake ebay accounts and screw over these bastard scalpers w/ fake bids. Somethings gotta change with these system launches. They're FUBAR.

Free Speech @ Dec 18th 2005 9:02PM

Well said #17,

Everyone should wait for the PS3 as most people are going to anyway. This launch fiasco is making Sony and Nintendo fans smile like crazy =)

Mouzo @ Dec 18th 2005 9:02PM

Well said #17,

Everyone should wait for the PS3 as most people are going to anyway. This launch fiasco is making Sony and Nintendo fans smile like crazy =)

pennywise969 @ Dec 18th 2005 9:02PM

I got my premium bundle. I camped out at Best Buy from 7pm last night until 9am this morning. I got a good kick out of the people who walked up at 9am thought they would just walk up and get one. and then they acted all pissed off and left.

Thryon @ Dec 18th 2005 9:02PM

They said you are crazy to put money down on a console that does not have a release date or a price tag..they said that I was nuts when I pre-ordered in May. They said that they would save their money, and on launch day, walk into Wal-Mart or FutureShop and buy an XBOX360 on SPECIAL while I paid full price at EBGames. Well now they all want to come and play on my XBOX360, bacause they did not get any. Goes to show, those with vision reap the rewards....so will Microsoft.

Brad @ Dec 18th 2005 9:02PM

I think we should have a constitutional ammendment which states, "For every night a person stands in line to buy ANYTHING they shall be required to be celibate for one year." Of course, this is probably redundant. We don't need these people procreating.

MumbleyJoe @ Dec 18th 2005 9:02PM

Sucks to be a fanboy today (that's me). I waited in line through the night, only to be the first person in line to NOT receive a 360. I've preordered too, months ago, but they have no idea when they'll get enough systems for me to take mine home.

Pictures of paid celebrities walking off with free XBOXs are infuriating. It does seem they've given away as many systems for marketing as they've had for sale and I don't get it. I think the 360 looks great despite the marketing. So why continue to market and advertise these when you can't yet supply your loyal base? I just don't get it. I don't doubt they'd move a lot of systems, the huge line waiting behind me at BestBuy this mornings suggests as much, but you can't sell it if it's not in stock.

This is nothing but frustrating.

Twist @ Dec 18th 2005 9:02PM

I think the shortage will last for two, maybe three, weeks and then the market will be flooded with 360's. Meanwhile during that two to three weeks the 360 will get put on all the hot items lists, and a few morons will pay 2x retail for 360's from ebay, and Microsoft will get plenty of positive press where they will state that the 360 has sold out all across the nation for multiple shipments without mentioning the fact that the number of consoles they were shipping was pretty low.

PJ @ Dec 18th 2005 9:02PM

I preordered on June 14th of this year at Gamestop. Despite the early preorder, I missed the cutoff by 4 people so I had to go hunt for a 360. So, I went out and found one at my local Costco. It was a $479.99 package that included the premium 360, an extra wireless controller, the plug and charge kit, and Kameo. Not a bad deal.

The analysts seem to think that MS has their supply chain down (see Wall Street Journal article from last Friday). What we saw last night, I believe, will be the worst of the crunch. Listen up kiddies - you'll see replenishments at some stores by the day after Thanksgiving. Call your local Best Buy, Wal Mart, etc Friday morning (day after Thanksgiving). You could score a 360 on the second shipment. I promise you, MS will have additional units out by Friday - the biggest shopping day of the year.

I know it is easy for me to say b/c I have my 360, but patience my friends.

Dave @ Dec 18th 2005 9:02PM

For the Sony and Nintendo fanboys gloating, remember this when you're little consoles launch. It'll be the same thing - at least for the PS3 - this time next year. I don't understand why anybody thinks any differently. Product in high demand + limited production capacity + shipping = dissapointed hardcores.

StalkerSteve @ Dec 18th 2005 9:02PM

Brad, that's the greatest idea EVAR!!! They're never gonna use they're equipment with a girl anyways.

pennywise969 @ Dec 18th 2005 9:02PM

#26, i wish your mom had been celibate.

Cyberclaws @ Dec 18th 2005 9:02PM

I noticed that a good majority of the peeps speaking negatively are the ones who lost out and didn't get one. Then of course, there's the fanboys. I personally want to get all 3 of the consoles. I secured the 360, now for Revo and then PS3 if it's not to insanely priced. I am more anxious for the Revo though. But all 3 consoles bring some exclusive titles and different aspects to the gaming industry that it's just too hard for me to just buy 'one'. Don't sell yourself short by being a fanboy! Get all 3! But I suppose if I could only have just one console, it'd be the Revo. But until then, I will enjoy my Costco Premium Bundle Special!

Neveranything @ Dec 18th 2005 9:02PM

Bottom line, no matter how this shortage started, either honest mistake, too many given away, or just hype, Microsoft is really going to be hurt by it. People who didn't pre-order are either going to be stuck waiting too long and completely forget about getting one, or be turned off from getting one and put their money towards a PS3 or Nintendo Revolution.

Nothing wrong with any of the systems, I plan on getting a Revolution myself, but Microsoft is really shooting themselves in the foot here.

Brad @ Dec 18th 2005 9:02PM

The truth hurts, eh pennywise? Hey remember that time you camped out overnight with your pals to have the "opportunity" to plunk down $500, a.k.a. twice your weekly salary, for a video game system. I'm sure you made a lot of male friends in line. By decree, you've just bought yourself one year of heterosexual celibacy.

Diametes J @ Dec 18th 2005 9:02PM

I really don't see them selling this many units. I know they've already irked many potential customers after this little stunt. Heck, they didn't even send enough accessories.

This morning while talking to the last twelve customers who were forced to buy the core systems due to lack of stock, I noticed they all wanted the hard drive. Funny thing, even though they shipped us twelve core systems, we only received seven hard drives. Imagine my plight trying to explain the situation to them. If you work at Best Buy or know somebody who works at Best Buy, ask them who "Jill" is and then imagine talking to twelve of them at once.

Anyway, this morning was quite fun but with the shipment we received (40 - $399.99 & and 12 - $299.99), I highly doubt they will come close to this goal.

PJ @ Dec 18th 2005 9:02PM

In a Reuters story today: Jim Babb, a spokesman for Circuit City (NYSE:CC - news), said the retailer "would always like to have more" and expects to get resupplied several times between now and Christmas.

Wal-Mart has also gone on record saying MS has promised the company additional 360's weekly. I'm telling you all who missed out - call your favorite retailer on Friday morning (early).

Johan @ Dec 18th 2005 9:02PM

Um, I'd bet very good money that they won't move 3million in by year's end.

Jim @ Dec 18th 2005 9:02PM

5-6 mill by June 30 is not very much IMHO. so the "shortage" is true.

Brad @ Dec 18th 2005 9:02PM

Sorry for being a troll. It's just too tempting to flame the fanboys. I can't understand why people wait all night for a video game system that they could just wait a week or so for until supply catches up with demand.

checkbox @ Dec 18th 2005 9:02PM

I walked into my local walmart and picked up a premium bundle at 9AM this morning There were about 5 left in the case and no one in line. I went home and played until about noon and wasnt very impressed. I will have all 3 consoles when they come out. Hopefully ninty and PS3 are better than this. :(

PJ @ Dec 18th 2005 9:02PM

Quote from Best Buy on 360 availability:

Many stores quickly sold out. Best Buy spokesman Jay Musolf said that most of the chain's stores across the country were sold out of the Xbox 360. However, he said, additional shipments were coming.

"We've been telling customers they will have other opportunities throughout the holiday season" to buy the Xbox 360, he said. "Just because you don't see it on the first day," don't give up, he said. Musolf advised customers to "follow up with their local store, and check on the timing of incoming shipments."

There will be more systems coming soon Fanboys!!! Keep the faith.

PJ @ Dec 18th 2005 9:02PM

Advice on landing the 360 soon (via MSNBC):

To those still waiting, Hufford offered the following advice for landing an Xbox 360:

�Contact your local retailers as often as you can and ask very specific questions: �When are you anticipating the next shipment and specifically, do you have pre-orders that you will be fulfilling before you fulfill walk-up demands.�� It�s important, Hufford said, for consumers to find out whether they�re competing against other people walking into the store, or with a long line of back orders waiting to be filled as well.�

Thryon @ Dec 18th 2005 9:02PM

Sorry Brad, even at $499 Canadian and then add the extra for games/wireless controller/ Xbox Live Gold for a total of just over $1000 Canadian, that is still not a weeks salary. This for something that I will enjoy till the next one arives. Money well spent if you ask me. Now I would love to sit here and argue with you and all other flamers, but I have a game or NHL2K6 to play (like the good Canadian boy that I am)

PJ @ Dec 18th 2005 9:02PM

According to a new Reuters story:

Wedbush Morgan analyst Michael Pachter estimated that 900,000 Xbox 360s are now available. He expects 450,000 [additional units] to be shipped in the United States, 300,000 to be shipped to Europe and 150,000 to be held back for restocking this weekend [in the US].

Go get your 360 on Friday gentleman. All is not lost.

tf @ Dec 18th 2005 9:02PM

I think this is hilarious on so many fronts:

they want to do a worldwide launch so no one's pissed, but it means everyone has fewer units.

they want to benefit from the hyp and pent up demand, but people are also offput.

amongst my friends, no one, not a single one, is anxious for it. They are all waiting for the next Halo and price drops.

of course, there's initial demand, but only selling the same amount in the next 6 months (2.5-3 million in one month v. 3 million to June)? Pathetic.