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Forums - Microsoft - Xbox One production may slow down or stop to give retailers a chance to shift inventory

The topic of Microsoft's Xbox business was barely raised during its investor call, with no analysts asking about it at all. Some of CFO Amy Hood's statements did imply, however, that there is more supply than demand for its Xbox consoles. 


"We do expect to work through some inventory in Q4," said Hood, referring in this case to the period between April 1 - June 30, 2014. She also referred to "channel inventory drawdown for Xbox consoles," implying that manufacturing of Xbox consoles will slow or stop, to allow retailers time to work through existing inventory.

Full story: http://www.gamasutra.com/view/news/216199/Xbox_One_increases_Microsoft_revenues__but_its_cost_cuts_into_profits.php



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That does not sound positive, Their rival cant make enough.

Just cut the damn price, make a kiex less sku bring back the 360 strategy that worked damn well.



celador said:

The topic of Microsoft's Xbox business was barely raised during its investor call, with no analysts asking about it at all. Some of CFO Amy Hood's statements did imply, however, that there is more supply than demand for its Xbox consoles. 


"We do expect to work through some inventory in Q4," said Hood, referring in this case to the period between April 1 - June 30, 2014. She also referred to "channel inventory drawdown for Xbox consoles," implying that manufacturing of Xbox consoles will slow or stop, to allow retailers time to work through existing inventory.

Full story: http://www.gamasutra.com/view/news/216199/Xbox_One_increases_Microsoft_revenues__but_its_cost_cuts_into_profits.php

They said that they shipped 5.1M consoles to retailers, but I bet that they have more consoles sitting in thier warehouse just waiting to be shipped, so a slowdown in manufacturing is likely at this point.

At least it's not near about as bad as the Wii U which had sold just 160k Consoles during April-July period last year.  I think X1 has already sold more than that in just the first couple weeks of april.



Nothing unusal. Normal business practice to manage inventory. BTW microsoft seemed to shipped a lot than planned.



daredevil.shark said:
Nothing unusal. Normal business practice to manage inventory. BTW microsoft seemed to shipped a lot than planned.


I think it's a common theme with Xbox One.  Historically nothing to worry about, it just looks like a big issue when compared to PS4.



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I dont get it. If MS has so much X1 stock, why dont they launch in the 50 or whatever number of countries they have yet to officially launch in? Seems like a waste.



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fauzman said:
I dont get it. If MS has so much X1 stock, why dont they launch in the 50 or whatever number of countries they have yet to officially launch in? Seems like a waste.


They will, but those marlets are worth what.. extra 5% in sales.

X1 is out in all the markets that matter.



fauzman said:
I dont get it. If MS has so much X1 stock, why dont they launch in the 50 or whatever number of countries they have yet to officially launch in? Seems like a waste.

You cant launch in a country without first having their language supported by Kinect... otherwise the XBO is pointless. What are you meant to do without Kinect??



BeElite said:
fauzman said:
I dont get it. If MS has so much X1 stock, why dont they launch in the 50 or whatever number of countries they have yet to officially launch in? Seems like a waste.


They will, but those marlets are worth what.. extra 5% in sales.

X1 is out in all the markets that matter.

Its also losing in all the markets that matter

Sorry had to cross out that last part, it wasnt neccessary.



You can't get more confirmation than that, that a lot of console are on shelves. As suspected, this place is suspiciously quite.