With the news of Gears of War reaching 3 million sales in just 10 weeks, and a very successful Xbox 360 sales period during last month’s Christmas shopping season, the 360’s outlook seems to be very promising, but interestingly enough, the game console manufacturer is actually cutting back production instead of increasing it, according to a report filed by the San Jose Mercury News.
Microsoft is reducing its expected total 360 sales figures from approximately 15 million units to only 12 million worldwide by June 30. Peter Moore, head of Xbox 360 operations, said that although as many units as possible needed to be sold in order to recoup profits from game sales, manufacturing and shipping too many consoles has its downside–unsold units.
This past fiscal quarter, Microsoft’s Entertainment and Devices Group saw a loss of $289 million, which are comparable to similar losses reported last year, to the tune of $286 million. Because of the division’s losses, it is quite likely that Moore is cutting back on production in an attempt to cut losses.
The slow down of Xbox 360 sales may be due to the unexpected competition strength of PS2 and Wii sales during the holidays. If this is the case, the dominance of the Xbox 360 in the next-gen race may suddenly be at risk, and Microsoft may need to take measures to prevent the slide by making the 360 more attractive to consumers by adding either bundled games or accessories.
But one thing is certain–the next-gen console race is far from over, and a clear leader of the pack still remains to be seen.
