It is hard to believe because they are not doing Nintendo-like numbers week after week, because they thought Halo would be bigger than Christmas and because PS3 has been outselling it world wide.

The reason why they haven't been able to meet demand is because of replacement systems.

totally agree steven787 - it's funny that a company that has had it's one year start wiped out by one competitor and the other is eating into that head start every week is claiming supply issues.

They've sold a lot less than Nintendo in a year extra so where's the supply strain? you've gotta wonder if this is true how many man hours go towards the whole RROD issue.

As Xbox will have this issue to keep at bay for a while yet, PS3 is riding high on BR victory alone without it's massive games to come out and Nintendo now the market leader and no price cut yet it's looking bleak for the 360 I feel.

Aside from the replacement comment, can anyone explain to me why it would take over 3 months to fix supply problems?

What'd they do? Make X amount of consoles in September and completely shut down their production? Why would they have 360s in stock during Christmas but "Oh damn, sales are down now but we still can't provide enough consoles"

Also, if there was supply issues, do you think they'd do a price drop in Europe? Essentially they'd be making less money on the consoles they do sell, but wouldnt be able to meet demand, so whats the point in that?

I don't want to look like a fanboy but this whole supply issue is BS, I don't remember hearing about it during Christmas time when it should have happened, it only came after the PS3 started beating it, didn't MS promise to have it all fixed by the end of February? How had could it be to make 150,000 units a week when Sony is requiring almost 200,000 PS3's, still alot of PS2's and PSP's, and Nintendo is contending with 400,000 DS's and 300,000 Wii's...

the PS3 AND 360 are selling millions behind what both companies had projected to this point. To say you can't make them fast enough when you are selling them in such low numbers? I call bullshit on this response.

Even if they are breaking at a rate of 30% (and I don't think they are), they should still be able to manufacture enough units. Give me a break.

I do think there was a shortage, but even MS is not so incompetent to run out of hardware in the weakest months of the year just because they predicated wrong. Something else is going on here.

^ so true.

Off Topic CaptainPreferences - I should have guessed you were a Manchester United supporter by the fact you're not from Manchester.

On Topic - didn't the 360's dry up around the time when Br won the format war? anoyone think they intentionaly held them back to try and create demand and to save a little face from the inevitable boost the PS3 got from this.

@captainPrefrences - You're dam right Manchester United will win the title. Good to see another United fan around the place.

@Me - I'm not from Manchester either but I still support United. Have done since I was 5 when I first saw a football game on the television.

On topic - supply issues is a lie just like the cake. MS is just making excuses.

 Eating into it's head start? Maybe more like ant nibbles LOL..PS3 has only gained 39+26K=65k the last two months, 360 is 5.8 million ahead.

Even if PS3 continues winning, which is highly unlikely, it will NEVER catch 360 at that rate. 

You do realize that the biggest lead the 360 had was 7.5 million. But now its at 6.72 million. .78 million it has cut into its lead already. But nice try sharky.

Microsoft should consider only selling the XBox 360 Elite and XBox 360 Pro.
The Arcade and Core XBox 360's should both be withdrawn from the market, they clearly do not sell well lots of stores have too many of those two models available and the customer demands the Elite and Pro XBox 360 models.
What is the point of having 4 different XBox 360 models on the market? it creates so much confusion with the customer.