Barrons: Microsoft reduces Xbox production plans for Q4 by 40%

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Jadedx said:

Smashchu2 said:

kain_kusanagi said:

"rapid deterioration of consumer demand"? More 360s are selling now than six months ago. Why would higher demand now make them think they'll have less demand later when there are some many killer games coming out in the next year that will continue to pump up even more demand?

You have to think long term, like businesses do. Take the Wii. Despite amazing sales in 2007 and 2008, it still slumped in 2009 and 2010. Things can change quickly.

The high sales are all do to the new model, and they will cool down eventually (much like how Sony did). Microsoft is probably expecting this. Despite what you may think about their games, they are all sequels. And sequels do not push hardware.

Halo 2,  GT3, Halo 3,  Uncharted 2, etc.

Halo 3 = first Halo on the 360 carry forward of #1 exclusive franchise from XBox. There isn't an upcoming game that's in the same league. I have no idea what Halo 2 did for XB sales, but given XB's lifetime sales it obviously didn't do all that much for it.

You are looking at games that, at best, will cause a spike in sales of a few 10's of thousands over a few weeks, which is only a small % of the total quarterly sales of a console. You are overestimating the influence those games will have on HW sales. The only things that can have a major influence on 360 sales is Kinect, and console price.