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Microsoft expects gradual Xbox 360 sales
by Marcus Lai

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Retailers are expecting hot sales for Microsoft's Xbox 360 on Nov. 22, but the company sees more gradual console sales this holiday season.

Speaking with Reuters, Microsoft CFO Chris Liddell said Thursday that analysts were expecting more of a launch spike. He expects a more gradual ramp towards meeting sales targets.

The comment is another indication that there may not be enough Xbox 360 consoles at retail to supply the demand for Microsoft's successor to the Xbox.

On Wednesday, a Best Buy packing list revealed that the the electronic chain's retail stores could receive as few as 60 units to sell at launch.

Analysts had predicted 1-2 million units available for a global launch this holiday season. However, more conservative estimates see 1.5 million units for all three territories.

A global launch for a next-generation console has never been attempted due to the logistics of shipping enough consoles to multiple regions in a span of several weeks.

Ten days after the U.S. launch, Microsoft will drop the Xbox 360 to Europe, then to Japan the following week.

If launch numbers fall short, Microsoft will have less of a lead than anticipated against rivals Sony and Nintendo, both of which plan to release next-generation consoles in 2006.

Should Xbox 360s be sold out at retail, consumers may vie for hot handhelds like Sony's PSP handheld entertainment system, the Nintendo DS, or value-priced consoles from the current video game generation.

Early birds still have hope to score a system under the tree for the holidays. Brick and mortar retailers like Best Buy, Wal-Mart, and Target will take first-come, first-serve customers at the Xbox 360 launch.

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