Xbox One production might be halted

Microsoft logoThe Xbox One vs PlayStation 4 debate is an endless one though sheer numbers alone suggest that the latter has actually been performing much better in the market. Microsoft recently revealed that it has shipped five million Xbox One units. Sony on the other hand has sold seven million PS4 units to customers. It appears that Xbox One units might not be flying off of retailers’ shelves. During the company’s third quarter earnings call CFO Amy Hood hinted at “channel inventory drawdown for Xbox consoles.”

Basically what this means is that Microsoft might stop Xbox One production in order to give retailers the time to work through their stock. This isn’t unusual as the scenario can often be caused when supply is relatively greater than the demand. Hood mentioned in the conference call that Microsoft expects to “work through some inventory in Q4.”

Microsoft Xbox One

Sony’s PlayStation 4 doesn’t seem to be having any problems in moving units. The difference between shipping and selling units is that retailers can send unsold inventory back to Microsoft, whereas seven million PS4 units have already been sold to customers. This means that Sony has already shipped more than seven million units to retailers.

Microsoft hasn’t commented on this report so it hasn’t confirmed if Xbox One production will be shut down or even slowed down to balance demand and supply.

Source: Ubergizmo

Tags: game consoles, Microsoft, Xbox One

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