Microsoft "aware" of 360 shortages

Robbie Bach acknowledges "disappointed" gamers, says software giant is shooting for weekly stock replenishments.

When the Xbox 360 was first announced, its high specs led many to wonder not if they would be able to find an Xbox 360 for sale, but whether they could afford its hefty $300-$400 price tag. Now that the console has launched, it's obvious the cost isn't the hurdle; it's finding one for sale that's the problem.

The many gamers who failed in their attempt to get an Xbox 360 yesterday have likely told everyone they know about their disappointments. Friends, family, and strangers have heard the gripes because of nationwide shortages of the item, deemed to be one of the hot gifts this holiday season.

It turns out those tales of sadness have reached the ears of those all the way at the top--the top of Microsoft at least.

In response to the retail drought of Xbox 360s across the country, Robbie Bach, president of Microsoft's Entertainment & Devices division, told GameSpot, "We are well aware that many gamers are disappointed to have not gotten their Xbox 360 on day one. We are working around the clock to manufacture as many Xbox 360s as we can and are replenishing our retail channel week after week."

Peter Moore, Microsoft's corporate vice president of worldwide marketing and publishing, had similar words on the subject. "Our goal is to replenish inventory in the channel every week," he said earlier this week during an interview with GameSpot at the console's launch event, Zero Hour. "So lots of Xbox 360s are flowing in every single week. It's not like we're shipping and then going dry for two or three weeks."

Though the North American launch has come and gone, other regions have yet to enter the next generation. Europe launches in just over a week, and Japan will follow a week after that. The push to ensure successful launches in all three regions further compounds constraints on adequate supply.

Moore recommends that gamers check back with local retail stores every week. Those who can't wait can always resort to more nefarious or exuberant methods of getting their hands on an Xbox 360.

89 Comments

  • poo15

    Posted Dec 3, 2005 10:59 am PT

    I made a pre-order on EBgames quite a bit ago, and I still have not received it. I contacted EBgames, but go figure, they ner responded. So i basically don't even know when their next shipment for pre-orders will be. I'm honestly getting a little fed up with this. I mean, pre-orderers SHOULD be one of the highest priorities for MS (At least, I Think so). So if anyone knows whenever the next shipments for pre-orders are going to be...let me know. It'd be greatly appreciated.

  • drak1968

    Posted Nov 30, 2005 10:44 am PT

    MS knows exactly what they are doing - it's never changed and will always be the same - those that disbelieve are foolish - period - my athlon 57FX and (2) 7800 GTX OC's will keep me busy until I can just drop by any store and pick one up off the shelf - good luck to those who really can't wait or are hoping for one for Christmas - sincerely - for those that want to get back at MS wait till the PS3 comes out and get it instead - even that won't truly hurt MS but perhaps it will give some peace of mind - Good Luck to all and Merry Christmas!

  • minlwintun

    Posted Nov 28, 2005 11:56 pm PT

    You know the real reason people who want XBOX 360 in the USA and don't have them? Its because of the asinine world wide release. Lets face 2 facts. 1)Microsoft sold more XBOX1 units in the US than in the other countries. 2) Japanese Console makers always give gamers in their own country first dibs on their new consoles by at least 4 to 6 months.

    I really think Microsoft Owes it to the Fans here in the good old USA to pull out some of the machines originally bound for Japan and Europe and reallocate them for the USA. Its already a given that XBOX360 will not be the number 1 system in Japan as they do not like the western world's focus on first person shooters. 3 of the 360 release titles are just that(FPS). So lets give the Americans (including Canadians too) the xbox 360s that we want and leave Japan and Europe with sloppy seconds 6 months later. If supply must keep up with U.S. demand this makes the most sense.

  • Bgrngod

    Posted Nov 28, 2005 11:40 am PT

    You're nuts if you think MS needed this kind of publicity to sell the XBOX 360. If I remember correctly they budgetted upwords of 500 million in marketting to sell the first XBOX. This kind of publicity is BAD publicity, and they know it. The only amount of money this would have saved them in marketting (had that been the plan) is a drop in the bucket to MS and not worth the trade off of having pissed of customers, and bad press all over the place.

    This is %100 legitimately a mistake on MS' part to not produce enough on day 1.

    I wish that they would release exact numbers on how many units they had ready for day 1. Rather interesting that they have not.....

    Kyle B.

  • shutdown_202

    Posted Nov 28, 2005 11:39 am PT

    [This message was deleted at the request of a moderator or administrator]

  • murderusone

    Posted Nov 28, 2005 9:52 am PT

    Anyone who thinks that MS is creating this shortage on purpose is crazy. In history, console companies have released systems around the world in sections, usually Japan, then the U.S., then Europe. There are ususally about four months spaced in between these launches. MS is launching WORLDWIDE within the same month. They didn't even have final hardware specs until about 6 months ago. Let's just say that 6 million gamers in the U.S. want a 360 launch day. Let's say the same for Europe and Japan combined(long shot). That equals the amount of current gen XBOX's sold in North America in the first two years total. Now the whole picture is becoming clearer. You must also realize MS depends on other industries to make their systems. ATI, for example, is responsible for the graphics chipsets. Someone else has to make the triple-core processors. Someone else might make the hard drives. The behemoth power supply, probably same scenario. Anyway, now you have to take into consideration that all these components must be carefully assembled, tested, then packaged, shipped to retailers WORLDWIDE, and sold to eager gamers. Not an easy process. Not like making a peanut-butter and jelly sandwich, anyway. Be patient and they will catch up. Jeez, what is it with everybody and their wild conspiracy theories. Of course MS wants to make less money by making sure that no one can have a 360 by Christmas. Sure......

  • Burninator84

    Posted Nov 28, 2005 8:41 am PT

    Interesting comments so far from everyone (some more than others) but I really do believe that Microsoft created this hype on purpose for its free publicity. Think about the fact that with any product, you have to spend MILLIONS of dollars on advertising and marketing etc. When you create a buzz that gets everyone and their mothers involved without having to actually spend money, then thats great from a business standpoint. Word of mouth is one of the strongest ways to sell a product, and that's exactly what MS is doing in this situation. I mean honestly, how many actual TV commercials have you seen for just the 360? Not for games, but just for the 360? I've seen maybe 2 different commcercials 5 times or so since launch.
    From the manufacturing standpoint, do you really believe that manufacturers can only pump out small numbers of consoles? Stop diluting yourself and think about the properties of mass production. If you can build an automobile in 10 minutes through mass production, then how long and how difficult is it to fabricate an Xbox 360? Not that difficult.

  • university_guy

    Posted Nov 28, 2005 6:41 am PT

    Last time i checked.... number 21 at EB....so close.....

  • TW_Darkmaster

    Posted Nov 27, 2005 8:33 pm PT

    [This message was deleted at the request of the original poster]

  • TW_Darkmaster

    Posted Nov 27, 2005 8:32 pm PT

    Would u want a diamond if it was easy to get and everyone had one? Probably not. Apply this same principle to the sale of the 360.

  • defiantman21

    Posted Nov 27, 2005 7:00 pm PT

    All this is Bull!

    I am willing to pay close to $600 dollars for the system and games, and alot of other people would do the same.

    But Microsoft doesnt give a crap.

    There is no company out there that gives a crap about their customers, b/c if Microsoft did care about their customers then they would have no supposed shortages and actually have enough consoles for sale so that everyone who wanted one would actually get one.

  • gameroz

    Posted Nov 27, 2005 5:43 pm PT

    of course alot of people were disapointed about it cuz they only had 50 xbox 360's in stores and got sold out too fast

  • ninjagrunt

    Posted Nov 27, 2005 3:32 pm PT

    Hpefully they dont rush so the 360 are jacked up viruses or something take ur time Im getting mine in junes when all the good games are out "GEARS OF WAR"

  • red-vs-blue

    Posted Nov 27, 2005 1:14 pm PT

    I think there is a huge stockpile of 360's somewhere because of all the givaways like the every 10 minutes and comedy centrals thankXgivaway weekend.

  • Zorak000

    Posted Nov 27, 2005 9:07 am PT

    oh, and marktemple, the people camping all have pre-orders and the store only received those couple dozen, with a 4-to-1 core-to-full system ratio.

  • Zorak000

    Posted Nov 27, 2005 9:01 am PT

    I hear that they haven't even gone into full production yet...

  • marktemple

    Posted Nov 27, 2005 4:45 am PT

    Why dont you all just stop complaing, grow up and face the fact that there are always more people looking for new consoles than there are one availble. As for the claims by some peoople that sony at leat meet their pre orders, lies. EVERY year since the playstation came out its nearly impossible to get your hands on the newest playstation here.

    As for people camping outside shops waiting for the console only to find out they have a few dozen left, might that have something to do with PRE-ORDERS?? for gods sake if your willing to camp outside the shop you should have least pre ordered the bloody thing. I preordered mine that first day that our local gamestop were taking the pre orders. then paid for it the day the prices were announced. Im in europe so i'll get mine now on friday and my biggest worry about the lauch day is gonna be the traffic on the way home.

    If your gonna complain about anything complain at EA they have made excellent games for the other platforms but when it came to the 360 versions they rip out a pile of features (Fifa 06 400 odd club and international teams down to 72 international, Tiger Woods 06 - 14 courses down to 6) then there is COD2, it games is identical, and i mean identical to the PC version no improvement in graphic, no improvement in gameplay, no changes all might as well just buy the PC version and save yourself a few pound. (And for all the americans complaining about game prices try buting them in the UK, we have to pay £50 sterling which is about $80)

  • TW_Darkmaster

    Posted Nov 26, 2005 1:43 pm PT

    Lol i laugh at you poor people who flame microsoft cause you didn't get a 360.. HA

  • MaximusZX

    Posted Nov 26, 2005 12:45 pm PT

    It's pretty much a guaranteed fact that Microsoft engineered this shortage of Xbox 360s to drive up demand for their new console. They want everyone desperate to locate one, because they know it'll mean every single console they will ship will get sold. That's a massive profit. I've even heard this shortage could last until March.

  • gameruler8721

    Posted Nov 26, 2005 7:14 am PT

    This "shortage" is no accident. They are trying to get demand even through the end of winter to try to drive PS3 into a corner. If the Xbox 360 demand is still high close to the PS3's supposed spring launch date then they are in trouble. Either gamers may not have the money to spare on a second next gene console or they may just not want to get the second right after the first. It is all a business and when you are as huge as Microsoft you now every detail of a market and know exactly what you are doing.

  • jdrub86

    Posted Nov 25, 2005 10:45 pm PT

    I was really mad because I preordered my 360 and they could not give it to me because of the shortage. I should have a 360 right now because how do you preorder and not get one?

  • Goldrock

    Posted Nov 25, 2005 10:22 pm PT

    haha whatever i loved xbox but the morons who shipped them know damn well the demand on next gen systems so yeah its their STUPIDITY for shippen so little shoulda waited awhile and sent them in mass product now they not gonna get a penny outa me.Do to the fact im not gonna dedicate my life looking for one since they are shippin them in small quanitys its gonna be bad real bad now gonna have repeat spender buyin many and scalping them off on ebay so if microsoft was smart they would send more and i mean more.to prevent the scalping of the system.

  • Jimbokundesu

    Posted Nov 25, 2005 10:05 pm PT

    I'm glad I reseved (and paid in full for) my 360. no camping out at Wal-Mart for me! Not that I would anyways. I have other things to play; I'm in no hurry.

  • cbence12286

    Posted Nov 25, 2005 9:47 pm PT

    Soooo glad I had my pre-order, didnt get it on day one, but ebgames.com assured me that I would have one in the second shipment, but if microsoft is replenishing the supplies, why hasnt the second shipment been shipped yet???

  • Enigma2K99

    Posted Nov 25, 2005 9:15 pm PT

    Is there anyone besides me that wonders how there can be such a serious shortage of X Box 360s... while you can't go 2 feet without running into sweepstakes that are just giving them away?

  • doggy47perfecto

    Posted Nov 25, 2005 4:38 pm PT

    you serious chipps? i dont believe you

  • darkside5001

    Posted Nov 25, 2005 3:29 pm PT

    Glad i'm getting a PS3, im not checking back every week.

  • mikechipps

    Posted Nov 25, 2005 9:27 am PT

    Well after waiting in line for 15 hours and spending over $600 total (including accessories) My 360 has already died on me. The dreaded 3 flashing red lights.

  • M4M203

    Posted Nov 24, 2005 6:30 pm PT

    uhhh this just sucks arse

  • chibi-acer

    Posted Nov 24, 2005 5:15 pm PT

    I don't buy it that Microsoft is purposefully creating a shortage. Did everyone forget that the developers only got their final 360s for testing a month and a half ago? The 360 hasn't been in production for very long, and it's likely in Microsoft's better interest to grab as much market share as possible before PS3 comes along.

  • EzrielKlein

    Posted Nov 24, 2005 3:09 pm PT

    I believe that Microsoft purposely produced very little 360's to generate word of mouth as well as to make suckers out of us. They get away with it on the PC so why not for a console?

  • migg2

    Posted Nov 24, 2005 1:49 pm PT

    Guys, let's remember... it's about market share for MS. at this point. Microsoft is NOT in this to make money during the initial release. They're already losing money on each machine... and from a business perspective. That's OK. They already know when they'll break even. They're already the only show in town with a next gen console and they're conrolling the market with this strategy. Image is everything right now. They are losing money because they'll make it back eventually. Right now they will gladly PAY for market share and a healthy head start on the PS3. This is why they really don't care if they saturate the market right now and meet all the demand. They know that those of us complaining will definitly buy it as soon as we can get it anyway. Their tactical priority right now is to establish an image that the console is so superior to everything else that every one has to have one. And it's working... to a point. Here's the kicker that will bite MS in the butt with this strategy... I can see it in some posts already... what do you think is going to happen when PS3s are available for pre order? Burned gamers who didn't pre-order 360 (and may normally not pre-order) will learn from this experience and will definitly pre-order the PS3. Then, Sony will just have to make sure they learn from MS's mistake and insure that they have supply for all us gamers waiting to rush into their loving (sic) waiting arms. Good move Microsoft.

  • ZeEhEiK

    Posted Nov 24, 2005 10:59 am PT

    Well I could see MS having some supply difficulties... They are shipping to a hungry next gen nation.

    Also, the thought that MS is doing this on purpos to make money is a bit improbable, but still possible. Remember, Microsoft is in this for the long run, they want to control the console market, big surprise. So they will take a hit on every console, losing millions in sales, but they have limitless funding on this project. They will win.

  • noluvv

    Posted Nov 24, 2005 9:44 am PT

    There are three different manufacturers producing 360's for microsoft I hope I get a good one. I care, I want mine before christmas. They have had plenty of time, there shouldnt be any hardware problems but there obviously are some. I just hope none of the manufacturers try to cut corners.

  • SavoyPrime

    Posted Nov 24, 2005 9:39 am PT

    I don't mind the wait. I surely don't want them to rush the manufacturing process. I don't want a defective unit. After reading about the issues that some X360 owners are having, I'm glad my preorder at EB won't be in until a week or four from now.

  • migg2

    Posted Nov 24, 2005 9:01 am PT

    BagaYaga,

    Actually, now is the PERFECT time to cash in on some free hype by creating artificial demand simply because MS KNOWS it has no direct next-gen competition for at least 1 year in the States. Are you kidding me? Marketing has already forecasted sales through the year up until PS3 is released. They made a decision to create thi demand based on a belief that the buyers who don't get one in November will definitly buy one when it's more available through the supply chain. Remember, the people who are dying to buy these now are earliy adopters like us. We'll buy it now or in 2 months - even if we're pissed now. So to them, the sale in November is the same as the sale in January with the added benefit of free publicity of their new system flying off the shelves will keep the product fresh through the Xmas buying season and the new year. Throw in the extra kicker of building a stronger relationship with retailers because it allows the market to support (buy into) the discpicable "bundling" concept and it's a win/win situation for MS.

    And hype IS a big deal especially when you have a marginally better system than current gen and faced with the possibility that units will sit unsold on the shelf for any period of time. That would be a huge black eye to MS and a step in the wrong direction in Microsoft's campaign to gain market share before PS3 hits. IF MS and Sony were releasing at the same time, you'd better believe there would be enough consoles to go around for everyone. But, this isn't anything new. The same thing happened with PS2 and GameCube. It just seems like these systems are harder to find than any before. I think MS tightened the spiggot too tight and got a little too cocky. I wouldn't be surprised to see supply increase more soon but still not enough to fully meet demand in the coming weeks - just enough to keep the hype but not piss people off to the point where they're calling their local TV news stations for action. Again Microsoft, stop insulting the intelligence of your gaming market and early adopters. It doesn't take a rocket scientist to figure your strategy out. You're just hurting the fans who simply want to enjoy your product.

  • noluvv

    Posted Nov 24, 2005 8:27 am PT

    If Microsoft would have shipped every store with a hefty supply of systems the hardcore gamers would buy them and all the rest would sit on shelves. Look at how many parents know about the 360 now. Microsoft will now ship just enough systems to sell out every week until after new years then the systems will be readily available.
    Im in California and microsoft gave 100's of core systems to radio stations if there was a real shortage this would not have happened. I know they gain from the advertising but the stations gave the systems away for free.
    By generating the shortage ploy Microsoft has cleaned up so many people have purchased the core system just to have a 360 and now are forced to spend all the extra money on add ons that they could have had for $100 MORE microsoft is making and going to make a huge profit from the desperate ones who foolishly purchased the core system. Any serious gamer knows you need the hard drive and the wireless connection is very comfertable. Dont forget about the headset anyone getting the 360 and not getting xbox live is really missing out. If it wasnt for xboxlive I would wait and just get a ps3.

    Think about it Bill Gates didnt under estimate the demand he knew what was going on and has played his cards perfectly for maximum profit at the customers expense. Shame on microsoft.

  • BagaYaga

    Posted Nov 24, 2005 7:29 am PT

    Hmm...a lot of interesting comments.....

    Yes MS could use the "artificially increase media exposure and consumer demand by an initial shortage on release" strategy, but......



    Remember our console history, boys and girls!!!



    OF COURSE the consoles don't make money, especially once the price wars start after PS3 releases....It's all about MARKET PENETRATION ie getting a 360 into as many households as possible vs Sony and Nintendo's offerings



    So it really doesn't make sense to have a shortage while the competitors aren''t out there yet! Even if they are losing money per unit, at $400 a pop that's LESS money lost than when POST PS3 release prices drop. So MS should be making money while the sun shines.....or at least losing less!!!



    LOL,



    From your average MBA/marketing/ole gaming fart !!!

  • lnxpwr

    Posted Nov 24, 2005 5:27 am PT

    A triple core Power PC chip, a hybrid GPU/North Bridge called Xenos designed by ATI. I wonder if they are having chip fabriation troubles?

  • HardWood

    Posted Nov 24, 2005 4:30 am PT

    xbox360 rulez

  • Demaar

    Posted Nov 24, 2005 3:17 am PT

    The whole point of the matter is, is this shortage "manufactured" or real?
    Me, I think it's fake.
    They have HOW BIG a head start on Nintendo and Sony? If they were really hard pressed pumping the consoles out, they'd push back the date a little.

    Also, a "shortage" drums up hype, doesn't it? People who were borderline/fence sitting on whether or not they wanted a 360 will now think "crap, I might miss out if I piss around, better grab one to be sure".

    Same deal with the PS2, really. When it was launched I mean.

  • Swampthing

    Posted Nov 24, 2005 2:20 am PT

    This is absolutely the worst launch of a console EVER. MS inability to even meet pre-orders MONTHS old shows their callous disregard for the consumer and more attention to getting their name all over the news. All the screaming kids who are begging their parents for a 360 will go to the stores to get one, see they aren't in stock, and simply buy a regular Xbox, PS2, or GC instead. Each one is a sale LOST by MS inability to even get their product to the shelves. As an Xbox owner myself, I tried several places and even hit the midnight opening in Virginia, but no units were available. Now we see MS is losing money on each 360 sale, it makes me wonder if Gamespot was right when they reported a few weeks ago that this shortage would be intentional to save MS some money.

  • noluvv

    Posted Nov 24, 2005 1:40 am PT

    One more thought. I feel sorry for people who got caught up in the hype and forked out all kinds of cash on bundles with games that were week just to make sure they got a system, or the desperate people who bought systems from ebay cause they got caught up in the hype. You can take an unopened product back to a retailer but not ebay OUCH! I dont want to see what happens if systems fo start pouring into stores weekly. There will be a lot of angry people.

  • noluvv

    Posted Nov 24, 2005 1:30 am PT

    I told My buddies this was a ploy to get hype and it seems that I was right. has anyone else noticed how no stores would tell people how many they would have and how the stores were told to put sold out signs up? After the system sells out and you asked the stores when they will be getting more they tell you probably next year. People then get bummed out, then miraculously microsoft announces they are aware of the problem and will be shipping more systems weekly hmmmmm..... I wonder if people who couldnt get one the first day will be thrilled and go buy these? And I wonder if people who have been watching the news and hearing about the frenzy will then by someone in there family one? The answer is yes! Good job microsoft! You guys are dirty but smart. I can honestly say you never had me fooled and Im glad I didnt waste my time in lines I'll get mine this week or next week. I will also get a ps3 when it comes out cause im a hardcore gamer. Like one guy said earlier they admit to losing money on every system made and if there wasnt a shortage and actual numbers were shown on how many were sold at launch was actually tallied this along with the mediocre launch list and reviews would make the launch a flop. This shortage has given the system plenty of exposure. Lastly microsoft I hope for your sake there arent system defects cause I have been hearing about over heating issues, if there are you will lose so much money. I know I will be pissed if after spending all this money on a system accesories and games will have a quality issue with my system.

  • ROCKINGFOOL

    Posted Nov 24, 2005 1:19 am PT

    well aparently is agr8 news to me that the xbox360 is in high demands to the ppl cuz maybe ken kutaragi might change his mind and make the ps3 to lets just say to affordable price cuz i aint gona buy 800$ which idont think its gona be not less than that ....1200$ thats what ithink of the ps3 would be when it launches

  • catdoglee

    Posted Nov 23, 2005 11:53 pm PT

    I live in So. California and my Best Buy had a long line out front on Nov. 22 , but after waiting in line for about 2 hours my wife got us an X-Box 360 no -problem and was told that they had approx. 375 of the $399 systems not even counting the $299 ones !!! So apparently some stores are getting a lot more than others......

  • Carpe_Noctum

    Posted Nov 23, 2005 10:41 pm PT

    Worst launch ever. I have never had a problem getting a console at launch before ( Atari 2600 and up ). Pre-ordered late may, don't have a 360. Not a big deal really but, not thrilled by it.

  • toyungu

    Posted Nov 23, 2005 9:46 pm PT

    i have been an xbox loyalist from day 1. I am on of the people who waited for xbox and did not get a ps2. If it can be confirmed that she shortage was a saels ploy, i will be moving elsewhere even if it is revolution. "Good looking out " microsoft.

  • MWRHC

    Posted Nov 23, 2005 9:22 pm PT

    The only reason the xbox 360 is selling so much is the thought of halo 3.

  • dashizy666

    Posted Nov 23, 2005 8:11 pm PT

    that is a relief but unlike most people Im not getting mine after chrismas probably mid-late january maybe later. Why? I avoided the launch where demand was overwelming. During the holidays the system will be on everyones gift list but not mine. I figure a month after the hoildays the demand wont be as sky high and most likely more shipments will show up at the stores. I hate to wait but that ok because I only have $50 towards and i'm working for my father's business so I have a steady job and I won't get fired YES! The system is mine i just have to work for it.

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