Analyst says 360 supply problems easing

In a research note to investors this week, American Technology Research analyst PJ McNealy indicates that the Xbox 360 shortage that has dogged the platform since its North American launch last November is almost over.

"We surveyed 125 retailers late last week, and 21 percent had at least one Xbox 360 Core ($299 version) console in stock," McNealy wrote. "Most also reported receiving shipments last week and are now seeing a relatively steady flow after stock-outs abounded for most of December and January."

ATR found that 26 stores had Xbox 360s to sell, but 21 of those only had Core units, and most had only one to three units in stock. Of the 125 retailers, McNealy suggested only two had "decent inventory," with one store having 10 Premium units, and another having seven Premium and six Core.

"We heard commentary from several retailers that is consistent with what we have heard from industry contacts over the past six weeks: Inventory is expected to flow better in late February, and by late March inventory levels should be consistently filled," McNealy wrote.

As a result of the finding, McNealy said ATR's Xbox 360 estimates remain unchanged, expecting nearly 6 million units to ship by the end of June, and 10-12 million by the end of the year.