record earnings yesterday in lieu of continued losses, Microsoft reduced expected 360 shipments from 13-15 million to 12 million "due to unsold inventories in stores." To paraphrase liberally, "Um, we're reducing our target shipments because we unloaded a slew of 360s on stores to meet our 10 million 'shipped' goal. We guess they aren't selling quite as well as we hoped."
But that's neither here nor there. The console is doing well. Still, publisher stocks dropped soon after the news today as most are expected to take an earnings hit via the reduced shipments in addition to the lackluster performance of the PS3. Said analyst PJ McNeally, "Video game publishers will be under pressure today after Microsoft cut its life-to-date shipment ... There is investor concern about a re-set of expectations around both the Xbox 360 and the Sony PlayStation 3
As for Sony, they're planning to issue their financial report next Tuesday.
[via Game Daily