Microsoft’s Microsoft’s Xbox will launch a week late with half the expected units available.
Microsoft has announced that the US Xbox launch will be delayed until November 15, a week later than originally planned, while the number of units available on launch will be closer to 300,000 than the proposed 600-800,000. The impact of recent terrorist attacks on top of reported production problems is likely to be responsible.
The changes could be a windfall for Nintendo and Sony. Nintendo’s GameCube will debut in the US on November 18 with 700,000 units available. Furthermore, Nintendo plans to ship 1.1 million GameCubes by the end of this year. Microsoft will find it hard to catch up with such a head start. Sony is also doubtless rubbing its hands with glee, as its PlayStation 2 will gain additional months of market leadership.
Major US retail chains such as Wal-Mart have been asking Nintendo for more units to offset the expected Xbox shortfall, but the Japanese firm has been unable to change the current launch details. This may represent a substantial missed opportunity for Nintendo, since the GameCube will be the only alternative for frustrated would-be Xbox buyers. Early sales are crucial for new consoles, boosting developer and gamer interest.
The negative impact on Xbox sales is clear, with the Christmas season Microsoft’s only chance to catch up with the GameCube. There is also the risk of frustrating fickle gamers who traditionally have a negative view of the software giant – just the consumers Microsoft seems to want to woo the most.
Further knock-on effects include the potential impact on developer confidence. Developers hoping that the Xbox will push demand for software are likely to be disappointed, with implications for their balance sheets. In difficult economic times this will be the last thing they need.
After E3, many felt the Xbox had lost the momentum it had gathered early this year. Following this blow, Microsoft needs to pull something very special from its hat to recreate hype around its console.
