Microsoft Could Cease Xbox One Production Due to Unsold Stock


Even on Christmas Eve last year, Xbox Ones were easy to find.
Even on Christmas Eve last year, Xbox Ones were easy to find.
Go to any major retailer such as Best Buy and you’ll likely see mountains of Xbox Ones available for sale. Unlike the PlayStation 4, there doesn’t seem to be a thirst for Microsoft’s next-gen system in quite the same way. With so many unsold systems piling up on store shelves (estimates are anywhere from 700k to a million unsold), what is Microsoft planning to do?

According to a piece on Gamasutra, they could slow or stop production completely to allow retailers to sell through what they already have:

The topic of Microsoft’s Xbox business was barely raised during its investor call, with no analysts asking about it at all. Some of CFO Amy Hood’s statements did imply, however, that there is more supply than demand for its Xbox consoles.

“We do expect to work through some inventory in Q4,” said Hood, referring in this case to the period between April 1 – June 30, 2014. She also referred to “channel inventory drawdown for Xbox consoles,” implying that manufacturing of Xbox consoles will slow or stop, to allow retailers time to work through existing inventory.

There are some things Microsoft can do to change the fortunes of the Xbox One in the US, lets just hope they start doing them quickly…

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