<table style="width: 90%;" border="0"><tr><td><strong>kain_kusanagi said:</strong><br /><p>"<span style="color: rgb(0, 0, 0); font-family: Arial,Verdana,Helvetica,sans-serif; font-size: 13px;">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?<br></span></p></td></tr></table><br /><br />

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.

Uncharted did nothing for PS3 hardware. GTA1 and 2 were not popular. The series didn't take off until 3 so it was less a sequel for most people.

You are right about Halo, but consider how well did Halo: ODST do. Do we really think Reach will be a great hit after ODST.

If the news is true, it could be that there was such anticipation for the new and more reliable model, that also people wanting to buy it for Xmas couldn't wait anymore, pushing forward their purchases.

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.

Stupid double post

Of course what "poor demand" means in relation so this article is very subjective they could simply be stating that having had higher than normal demand they are now in a period of low demand. Of course it could also indicate a change in platform or who the hell knows.

Best post in the thread...You're spot on and one of the few post that looks at the big picture.  The reduction is consoles being produced has nothing to with the games being released. 

And if Microsoft (And the rest of the semi-conductor industry for that matter) is wrong and they sell out of systems they get to play the "We sold out of consoles due to overwhelming demand card" thus creating more demand. 

Nice find pob.  I had to read the article to be sure they mentioned 360.  I wouldn't have thought they meant that much in terms of WW chip sales.  It's like I don't trust people on the internet.

"'Global Macroeconomic Factors" as the reason for shorting this order reinforces my feeling that the recession is far from over and sales this holiday may be a bit off in Am. and noticeably down in EMEAA.  

As 'zarx' , 'Squillam'  and 'scat398' have already stated they are revising production nos. for Jan-Mar.  The latest versions of Gears or Dead Space aren't going to move much HW at this point in the gen. so it makes sense to me.  M$ can't have expected much better nos than we're seeing lately so they must have their estimated holiday HW already in place or in production.  The only question really is 40% less than what?   What did they think they would sell in early 2011?   M$ seem to be playing a more conservative game now that they have a place in the industry and that makes sense to me too.  Show some real profit in EDD for a change.