@BKK2

I hate to repeat myself, but here is a copy paste from one of my previous posts on the subject for you to peruse. Basically Microsoft only very recently addressed their manufacturing difficulties.

I am always amicable to providing proof.

Microsoft lost almost half of its console manufacturing capacity in November of last year. While they did not make up the production short fall until March of this year. Replacing manufacturer Wistron with Asustek, Pegatron, and Unihan. Which should produce half a million consoles monthly. Given time for tooling the plants the new manufacturers shouldn't come into play for over a month. Which means the problem may be resolved but not in time for Microsoft to use its increased production capacity.

The loss of half their manufacturing capacity is what directly lead to this years shortages. That and better then expected holiday performance. Basically Microsoft was making less consoles then they previously had, but they were also selling more of them then they had the previous year. The result was that their surplus was depleted. Completely so in North America for at least one model.

The new manufacturers are supposed to contribute half a million consoles monthly to Microsoft's production. Were they to be making up Wistron's share of capacity that would put production at 1.25 million units per month. So even pushing it for all they are worth Microsoft might reach 1.5 million units, and they have no surplus in the warehouses. They exhausted that earlier this year, and there is a legitimate question as to whether the new manufacturers can reach their goal before the game is released, and whether the sales before the release will significantly reduce available supply.

Microsoft has nowhere near the supply they need to exploit the games release. They may have a million extra consoles to work with at most across all of their markets. Like I said in my previous post ideally they need between three and four million to do the job proper. They are just not going to have that. Four or five months from now yes they will. They can begin to rebuild their back supply, but right now they just don't have one. There is no magic that can make that happen over night or in less then a month.

Relevant links.

http://www.tgdaily.com/content/view/34849/118/

http://www.i4u.com/article15558.html

Wait so even after the whole RROD issue was set aside last year, the fact we are not counting only the 360 but the zune and other products as well MS came up with only 89 million? I also dont buy the Eupean price cut affecting profits THAT much, out of 3 or 4 months the price cut has only been around for 3 weeks. 

 The (324) is for the same quarter last year... its for comparison

"lol?"

You realize there is a difference between spin and lies, right. Also, you know this includes the Zune?

You ever seen a MS press release after NPD release? Then you know spin. It's not technically a lie, it's just cherrypicking and excluding certain information.

That's what this is. Don't get offended when I call MS spin artists, they are, try to flame the next guy who doesn't know any better, cause your not gonna squeeze blood from a stone. 

Microsoft is the worst of the worst when it comes to spin. Go read any of their press releases and compare them to reality, or just read my last post.

Zen i must admit your one of my favorite posters

lol, hey, thanks man. That's a cool thing to say.

Dodece:

Yes, I'm aware about MS manufacturing problems due to Wistron who stopped due to margins being too low and Asustek getting a contract to supply 500k/month (I started a thread here about it). My point was about this paragraph:

I don't think Microsoft can lie with the spreadsheet. that's illegal. :)

If the entertainment division is making money, does this mean Zune is making money now as well?

Congrats, MS. Good job. I would love to see how good the 360 is doing, though.