You know how the PlayStation 4 is selling so well that Sony still has trouble keeping up with demand and hopes they’ll be in steady supply by the Summer? Well, sadly, Microsoft is having the exact opposite problem.
Microsoft CFO Amy Hood has told investors that there will be a, “Channel inventory drawdown for Xbox consoles.”
“Draw Down” is really fancy PR speak for the fact that the units just are not moving off the shelf at stores so they have too much stock just sitting at warehouses to the point where they do not need to make any for awhile.
Hood added that the company “expects to work through some inventory” in the current quarter.
There is pretty much no other way to take this as anything but awful news for Microsoft. Their competition can’t even come close to matching demand. Six months in you still have an incredibly hard time finding a Playstation 4 anywhere. And Microsoft is literally sitting on so many excess systems that they are going to stop manufacturing them for awhile.
Ideally they would at least be at a point where the system is selling well enough that there at least is no stop in the flow of actually manufacturing consoles. You don’t just flip a switch when it comes to these things. It actually takes time to wind down from manufacturing consoles and then more time to start it up again.
This actually speaks way louder than the disappointing sales numbers in the most recent NPDs because that clearly means that Microsoft expected to sell way more Xbox Ones then they ended up selling for it to get to this point. They need something, anything to get consoles moving or yes this round of the console wars will pretty much be over by the end of the year I’d guess.
What do you think, GameSided readers? Is Microsoft in serious trouble here? Let us know your thoughts in the comments!