Xbox 360 sales fall way below expectations: NPD

Xbox 360 sales fall way below expectations: NPD

600,000 new Xbox 360 video game consoles have been sold by Microsoft in the US since they debuted in the market in November, according to reports of NDP analyst group.

Microsoft confessed last week that it wouldn't be able to meet its estimate of “3 million Xbox 360 unit sales within 90 days of launch.”

According to NPD, at this rate Microsoft's projection of selling 5.5 million consoles by the end of the current business year in June looks improbable.

However, these consoles have been in short supply. According to business watchers, their shipments during the crucial holiday season were way below expectations. Microsoft is hoping that its collaboration with manufacturer Celestica may see it offsetting these shortages.

The company also has to contend with competition from Sony and Nintendo, which are planning to launch their next-generation machines in 2006. Both Sony's PSP and Nintendo's dual-screen DS handheld consoles showed impressive sales figures in 2005.

NPD reported that the overall sales of potable titles showed a gigantic rise as they clocked $1.4 billion in 2005.

The portable hardware sales registered an increased of 96 %, while portable accessory sales increased by 88 percent and software sales increased by 42 per cent in 2005 when compared to the previous year.

Anita Frazier, industry analyst for NPD said: “The real story for 2005 was the incredible expansion of portable gaming. The GBA continued to realise stellar sales and the introduction of the DS and PSP to the market brought older gamers to the portable format.”

She added: “The introduction of the Xbox 360 was a defining moment for the industry in 2005, however . . . the full impact of next-generation consoles on the consumer market won't unfold until later this year.”

Microsoft Xbox 360 short supplies are attributed to factors such as lack of chip components and overstocking in markets like Japan, where sales were modest.