No More Xbox 360 Shortages, Says Microsoft

by Anton Shilov
02/13/2006 | 03:03 PM

Microsoft Corp.’s representative recently said that the shortages of the Xbox 360 game consoles will be resolved soon and the software giant will be able to supply enough gaming machines to gamers worldwide.

“Within the next four to six weeks, anybody will be able to walk into a store and buy an Xbox 360,” said Peter Moore, head of the Microsoft interactive entertainment division, reports Next Generation web-site.

One of the reason why customers and distributors complained about lower than expected availability of the Xbox 360 and why demand increased supply substantially across the world, was the global debut of the machine and inability to ship enough consoles at launch. This, however, allowed Microsoft to inspire interest towards the Xbox 360 across the globe and also allow at least some people to demonstrate the advantages of the console. Microsoft’s Moore defended the decision during his session at D.I.C.E. (design, innovate, communicate, entertain) summit in Las Vegas, Nevada.

“Was it controversial? Yes. But it’s what we needed to do to bring next-gen gaming to a global audience. There have been short-term shortages, but we’re driving a clear advantage as we go forward. It was the right decision,” Mr. Moore reportedly said.

The three companies contracted by Microsoft to build the Xbox 360 are Flextronics International, Wistron and Celestica, but Celestica plant was expected to come online in January, 2006. Based on the claims about increasing availability of the console, it is likely that Celestica has started production and more customers will be able to enjoy the new gaming machine from Microsoft.

“There were component shortages, but they’ve been fixed. Now we’re starting to cook. We’re building a vibrant, rich and profitable business model for the future,” Mr. Moore said.

Microsoft Xbox 360 console is based around microprocessor developed by IBM, high-definition visual processing unit designed by ATI Technologies, I/O controller engineered by SiS and some other key components. The gaming machine provides a broad set of multimedia capabilities in addition to games. Depending on the bundle, Microsoft Xbox 360 costs $299 or $399.