NEWS - Monday, January 9, 2006

90 Day Sales Projection Abandoned By Microsoft

Microsoft Abandons 90-Day Sales Forecast According to a report published in this morning’s Financial Times newspaper, Microsoft has abandoned its highly ambitious sales target of 3 million Xbox 360s delivered into the hands of consumers at the end of the console’s initial 90-day introduction period. Instead, the company will focus on the goal announced at last week’s Consumer Electronics Show of 4 million to 5.5 million units sold by the close at the company’s fiscal year at the end of June. According to Peter Moore, chief of the company’s Xbox 360 division, the revision of sales estimates reflected the fact that "nothing’s perfect - [the Xbox 360 is] a complex piece of hardware that includes 1,700 different parts. Every now and again the line will slow down because something’s happened and there’ll be a component that didn’t make it that morning." Moore added that by shifting the company’s projections to the summer, Microsoft will better be able to fulfill both consumer and analyst expectations. Moore believes that the addition of another hardware manufacturer (Celestica), the company will be able to meet its revised sales projections.


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